Merchant Business Solutions

Protect your business against Internet and MOTO fraud

Merchants can minimise the possibility of fraudulent purchases and chargebacks from Internet and MOTO transactions by implementing the following measures:

• Request the purchaser to provide the CVV2 (Visa) or CVC2 (MasterCard) three digit
number located on the signature panel of the credit card. If the purchaser is not in
possession of the card, it is unlikely they will know this number.

• Request the name of the cardholder’s bank. Fraudsters who have compromised account
details will not have this information. If the purchaser hesitates in advising the name of
their bank, caution should be exercised;

• Request the purchaser to provide a fax copy of their driver’s licence;

• Ensure the customer’s billing address and delivery address is consistent;

• Check the telephone book to verify address and phone numbers provided;

• Never forward goods to a Post Office Box;

• Obtain a signed receipt from the cardholder when the goods are delivered;

• In the case of orders for a large number of different goods, telephone the cardholder
after the order is placed to confirm the order. Also, have the purchaser read back all
details of the order. Frequently, where an order is fraudulent, the purchaser will be
unable to confirm these details, as they were ordering at random, with no record of
what they ordered;

• Be suspicious where multiple cards are used for a single purchase;

• Don’t continue to attempt authorisation after receiving a decline;

• Exercise particular caution in relation to overseas orders. Large orders should in all
cases be held back for shipping while the above enquiries are made into the legitimacy
of the purchaser. Merchants should not ship goods until satisfied that the purchase is
legitimate.