Internet Transactions

No one really knows how many Internet credit card transactions are fraudulent. Estimates range from under one percent to as high as 40%. Whether you are at risk depends a lot on what business you are in. Certain types of e-commerce sites are at greater risk, such as downloadable software, adult entertainment, information sites, and those selling high-ticket items such as computers and airline tickets. Because these "card not present" transactions are riskier, merchants are more often held responsible for chargebacks when fraud occurs. Here are some things you can do to minimize your risk. Our resource list has links to more information. Orders with a free e-mail address, such as hotmail.com, should be checked. Contact the customer over the phone and verify that they did make such an order. Anyone can get an e-mail with a name from somebody else's credit card. Request a faxed copy of a credit card and a signature for all large orders. International orders can be problematic too, as it is difficult to trace customers once the goods are delivered. Check for the credit card, and try to match it with the country from where the order is coming. An order from a customer in Bulgaria that is paid with a Chicago bank card is suspicious. Of course, all orders like this aren't fraudulent, but it is worth the time it takes to check.

How to avoid charge-backs See how to protect yourself during: Face-to-Face Transactions Telephone Transactions Click here for our list of credit card fraud resources.