Credit card fraud prevention for merchants: Point systems
Point systems are commonly put together when a series of tip-offs repeatedly
end in fraud. Criteria include the shipment method, when the purchase
was made, whether the e-mail account was free, the IP address, the total
amount of the transaction, the zip code, discrepancies between the billing
and shipping addresses, and so on. Merchants set point values for each
of these factors. This way they can systematically choose to accept or
deny sales based on their previous experiences. Point values can vary
based on the time of year.
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):