Credit card fraud prevention for merchants: Historical files
Merchants should keep files on all their customers. Historical files are often separated between good and bad. This way you have all the information you need to stop repeat offenders and trust reliable customers. A database of positive customer experiences should be guarded. They are valuable sources of income. Many go as far as to encrypt the computer file.
A file on negative business experiences can include difficult customers,
instances of fraud, attempts at fraud, refunds, and chargebacks. All credit
card information, addresses, IP addresses, and full descriptions should
be included. Although it doesn’t protect you against new criminal
attempts, it prevents repeat offenses. Some merchants gather these files
together, but a shared negative historical file has its drawbacks. A problem
customer for one vendor might be a dream for another.
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):