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Credit card fraud prevention for merchants: Authorization
When a valid card is scanned it receives authorization in under five
seconds. This is called real-time authorization. The only problem is that
stolen cards get approved too. Unreported lost or stolen cards still receive
authorization. A declined card must be reported, exceed its limit, or
be cancelled. This is why its always important to take extra precautionary
measures to ensure the legitimacy of a transaction.
General
Guidelines for fraud prevention
Credit card fraud prevention tips (researching
the customer):
- International Orders
- Quantity and Frequency
- Addresses
- Common Sense
- Free E-mail Accounts
- Legitimate Domains
Precautionary Methods (from Merchant Side):