You need to be wary of fraudulent purchases when you’re selling online – your business could lose a lot of money or your reputation could be damaged.
Watch out for suspicious online orders using stolen credit cards. Warning signs include:
- ordering the most expensive products or unusually large quantities
- an unusual order pattern, late at night or several in rapid succession
- using the most expensive shipping methods, international orders and shipping to PO boxes.
If you are suspicious:
- call the buyer and ask to speak to the cardholder
- ask for proof of name and address
- check dubious card details with your payment provider.
Protect your business by:
- considering limiting delivery to credit card billing addresses
- running credit checks on new business customers
- verifying payment receipt with your provider (for example PayPal, Visa or MasterCard) before sending goods or providing services
- using your payment provider's fraud screening program.
If your business operates an e-commerce website make sure your servers are physically secure, running security software and the latest software updates, and monitored for unusual behaviour. Learn more about securing servers in your business.