Online Selling Safety: Protecting Your Site From Chargebacks

Was your last order placed by an honest consumer impressed by your goods or a scammer who bought that credit card number from an internet chat room? Are some of your customers buying goods off your site but insisting to their credit card company that they didn’t? Internet fraud costs merchants millions of dollars a year, but taking these steps can help reduce the risk of chargebacks.

1.) Require a card security code on your checkout page.
There are different names for this code, but it consists of the last three digits on the back of most credit cards or the four digits on the front of an American Express card. There are many ways to steal credit card information, but requiring this code for every order can prevent the use of many of these numbers on your site.

2.) Do not process payment for an order until you have reviewed it first.
It seems much simpler to authorize an order and accept payment at the same time, but this gives you the chance to confirm that it is safe to process the order before capturing funds. If the shipping address is different from the billing address, you can call the customer’s billing phone number to confirm the order.

3.) Check the IP address where the order was placed.
If you are currently a Volusion customer, you can check the IP address for an order within the order record itself. It is located just under the customer number. You might want to call to confirm the order with your customer if the IP address state does not match the billing address state.

4.) Ask your gateway about their fraud protection services.
Some gateways allow you to set up filters that crosscheck customer data for you. If you get a lot of orders or don’t have a lot of time, the extra fraud protection might be worth it.

5.) Require a signature upon delivery.
This may not be a practical option for smaller transactions, but for larger transactions, it could be worth the expense.

6.) Use accurate product descriptions and require that your customers agree to “Terms and Conditions.”
It can be very easy for a customer to claim that they were misled on your site, but some simple idiot-proofing can save a lot of explaining to credit card companies. You can add “Terms and Conditions” to your Volusion site by adding a custom field to your checkout page.

Happy Selling!

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