In this era, it is crucial for average consumers to be wary of possible credit card fraud that may affect them. It will be financially problematic if our credit card is used by criminals. We should be aware that no credit card provider that can assure 100 percent protection. Unauthorized parties don’t need to actually steal our credit card, they can gain information to make purchase through our credit card account. When it happens, we can’t expect that card issuers will refund all the money that we lose and it takes some effort to get our account corrected. After being inflicted with identity theft, we could get additional debts that worth a few thousands of dollars. For every gain that criminal gets will always mean a loss on the consumers’ side. Merchants will also lose out, because they can’t guarantee consumer safety.
The most common credit card fraud is when specific information is stolen and an online order for specific product is placed. The merchant has no way of knowing that the transaction is fraudulent and the product is shipped to the thief’s location. Consumer often the first one who find out about this condition and the incident is reported to the credit card issuer, to cancel the transaction and issue new credit card information for the consumer. Things may go smoothly for the consumers, but the merchant still loses his item. This happens because credit card issuer doesn’t want to lose their consumers and they need to maintain their reputation. However, the card issuer can also become the one that loses money, if the money has been paid to the merchant after the item is shipped. In this case, they may seek to get their money back and merchant may still lose the money that they recently received.
In this case, merchants will receive the retrieval notice from the credit card issuer during the fraud investigation process. Because it is quite likely that the merchant has unknowingly delivered the item to the criminal, they will be issued a chargeback. Not only that merchant will need to repay, they could also be charged the administration fee for the chargeback. So, it’s not uncommon for merchants to become the actual victims of credit card frauds. Of course, it will be practical to recover the already shipped product and there’s no one who will help the merchant to get their item back. In this case, merchants can only take steps to fully protect themselves against any kind of credit card fraud and prevention is always be the best remedy.
In this case, it is important for merchants to insulate themselves from potential problems. In this case, merchants should find a way to check and validate the identification of the virtual buyers. AVS or Address Verification Service is a technology that can help merchants to access essential information about the billing address of credit cards. It means that the registered address of the card’s holder can be compared with the address used by the potential fraudster.