When The Card Is Not Present, Be Cautious
You and your staff are our most effective weapons against fraud.
Statistics show that the risk of fraud increases when the card and customer are not present at the point of sale.
"Card-not-present" transactions include catalog purchases, telephone or fax orders and Internet sales. They can also include recurring payments, such
as automatic donations and subscriptions.
You cannot accept mail, fax, phone or Internet transactions without a specific type of merchant agreement. Without it, you are not only vulnerable to fraud and chargeback losses, but you risk losing your merchant privileges.
So, before accepting a card-not-present transaction, make sure that you have the proper agreement. Then, take the necessary steps to prevent chargebacks:
- Start by getting authorization for every transaction. This reduces the likelihood of processing an expired or invalid card.
- Never ship items to hotels, office lobbies, or post office boxes. Without a permanent address, there’s no way to verify whether the shipment has been received or follow up with the customer.
- If a customer contacts you to cancel a recurring transaction, stop billing immediately.
- Protect yourself by making sure your return policy is clearly stated on your order forms, website, advertising and catalog materials.