Credit Card Fraud is on the rise with more and more merchants falling victim and if you do, 9 times out of 10 the bank favours against you (the merchant) and you’re left to try and recoup your loss.

What do you do? Well here’s the down-low on how to reduce your risk of falling victim.

How do you spot a fraudulent order?

We’ve found the most common red flags are:

  1. An unusually large order value
  2. They’ve paid for express shipping
  3. They’ve never purchased from you before.

What do I do when I see an order that seems suspicious?

We’ve put together 3 easy steps and a prompt on what to ask for.

  1. When you first spot an order that looks suspicious, don’t panic. Put the order on-hold so it doesn’t get processed.
  2. We suggest reaching out to the customer of the suspicious order.
  3. You’ve done everything you can, there is and will always still be a risk factor and you need to take that into account when making a decision whether to process or cancel the order.

We’ve created an email template you can use when reaching out to the customer:

  • State that the order has been flagged in the system and you need further information to process it.
  • Re-assure the customer that it’s in their interest and you are protecting them as well as yourself.
  • Request for Photo ID and a picture of the Credit/Debit card used to place the order, covering all but the last 4 digits. Make this part of your Term’s and Condition’s of sale.

Yes, they replied
and provided the information I asked for.
That’s great news. If it all looks good and the name of the ID and Credit/Debit Card matches then the risk of the order being fraudulent is lower. (It doesn’t completely mitigate the risk)

~ You will now have to make a decision whether to process or cancel the order.

– and they do not want to provide ID.
Some customers may feel it’s a violation of their privacy, and I don’t blame them as a lot of companies do misuse private information but you need to stick to your guns. It’s in the interest of your business and the customer.

~ You will now have to make a decision whether to process or cancel the order.

They haven’t replied, How long do I wait?

Good question. As a rule of thumb we normally suggest up to 72hours to respond, after that we advise the merchant to refund the order as no response is another red flag.