We have already discussed common types of credit card fraud and what to do if your business’s credit has been targeted. Today, we will talk about how to protect your e-commerce business from credit card fraud.

How to protect your ecommerce business from credit card fraud

Online shopping has created an environment that can be easily exploited by criminals. Because the physical card does not need to be present at the time of purchase, these transactions are more vulnerable to fraud. This is because criminals do not need to replicate some of the physical security features on credit cards and can use stolen account information more easily.

Look for suspicious activities

• First Time Shoppers. Criminals are constantly finding new victims. These victims are not likely to be your existing customers.
• Multiple orders from different cards from a single IP address. Multiple cards being used from the same IP address can often be a criminal using stolen account information to purchase goods.
• Orders shipped to the same address but with multiple credit card account numbers. It is unlikely that the same household will make multiple purchases from the same merchant with many different credit card numbers.
• Many orders from one credit card account in a short period of time. This may be a criminal trying to maximize the credit limit of the account before it is reported as lost or stolen.
• Transactions where the shipping address and billing address are in different countries. This may be a criminal shipping

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In our last post, we discussed the different types of credit card fraud and how you can protect your business. Today, we’ll talk about what to do if your business’s credit is targeted.

What if my business’s credit is targeted?

Businesses, like consumers, can have their credit card accounts exploited for credit card fraud. A business’s credit card account information can be stolen in the same ways a consumer’s can and the account information can be used to purchase goods or extract money. It is important that businesses protect their credit card accounts from unauthorized use.

Here are some ways to protect your business’s credit:

• Report a lost or stolen card immediately.
• Check your transaction records every month to look for unauthorized payments.
• Never give out your credit card number or your PIN to anyone.
• Never give out your credit card information over the internet through email, social media or instant messaging.
• Never give out your credit card information for payment over the internet unless using a secure payment portal with a reputable company.
• Never give out your credit card number or PIN over the phone. Your credit card company or bank will never call you to ask for your personal information (such as credit card number, PIN, or security code on the back of your card).
• Sign the back of your business’s credit card as soon as you receive it.

Here are resources for more information:

• Phone Busters is a Canadian anti-fraud call centre managed by the Competition Bureau

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Credit card fraud affects almost every business in Canada and accounts for 15 percent of all fraud in Canada. While this is a daunting statistic, measures are in place to reduce the risks presented by credit card processing.

Your business is not liable for credit card fraud if you can prove you were diligent in trying to detect fraud, this article will outline some common types of fraud and how you can protect yourself against them. Having a large number of chargebacks (reversed credit card transactions due to fraudulent activity) increases the risk assessment of your business, resulting in higher credit card processing rates.

In this three-part series, we will discuss:

• Common types of credit card fraud
• What to do if you business is targeted
• How to protect your ecommerce business from credit card fraud

Common types of credit card fraud

Today, we will discuss common types of credit card fraud and how to protect your business.

Lost or Stolen Card

Criminals who obtain lost or stolen credit cards may use them to purchase goods or withdraw money. Visa Canada, MasterCard Canada, and most other major credit card providers closely monitor the use of their accounts for fraudulent activity. They will freeze an account with suspicious activity until the issue can be investigated.

Protect your business by:

• Checking each purchaser’s signature to ensure it matches the one on the back of the card.
• Asking for identification from suspicious purchasers.

Upgrade to the new chip and PIN technology to protect yourself … Read more

Chip and PIN technology is one of the most significant industry changes your business will face this year. Recently released in the Canadian market, this technology has been adopted by many merchants across the country.

What is chip and PIN technology?

Chip and PIN technology is a way of authenticating a cardholder’s identity. An embedded microchip contains the customer’s information, and a four-digit PIN is used to verify the customer’s identity. In order for the transaction to be approved, the PIN must match the information stored on the card.

Chip and PIN card systems are based on the EMV standard, developed by EMVCo LLC, whose founding members included Europay, MasterCard and Visa. These standards enforce the use of certified EMV compliant POS terminals. EMVCo LLC defines chip card and chip-reading terminal requirements by auditing and certifying merchants for EMV compliance.

How does chip and PIN technology affect your business?

Chip and PIN technology will affect your business in several major ways. It will:

• Require EMV compliant software and hardware.
• Increase transaction speeds.
• Increase customer confidence.
• Decrease fraudulent chargebacks.

Software and hardware

Some merchants are frustrated to discover that recently purchased POS terminals are not EMV compliant. Check your existing contract to see if you are EMV compliant. If you are not, determine whether you can upgrade to EMV compliant POS terminals without breaking your contract.

Speed

Chip and PIN technology speeds up transactions because customers don’t need to sign a receipt. Faster transactions mean … Read more