• Red flags for fraudulent purchases include: bulk transactions, first time shoppers, big ticket items are being purchased, rush delivery, shipping is requested to a different address than the customer or the shipping address is listed as an overseas address, large purchases are being made with numerous credit cards and shipped to a single address, separate purchases are being made but they are coming from a single Internet Protocol address.
  
• The customer should be required to give you the three-digit number on the back of the card. This will ensure that the purchaser has the card in his or her possession.

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Labels: Business Fraud, Card Not Present, credit card fraud, credit card payments, online payment processing, prevent fraud

• Keep in mind that a criminal does not have to be in possession of your card to make fraudulent purchases. A criminal can obtain your credit card information and make card-not-present transactions by just knowing your credit card number. You should always shred or burn your credit card statements. To protect yourself even further, you should always keep your bills and credit cards in a safe place away from the eyes of anyone who enters your home.
  
• Be patient when you are making card not present transactions. Most businesses are now requiring that you give additional information when you make purchases to ensure that you are indeed the cardholder.

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Labels: Business Fraud, Card Not Present, Consumer Fraud, credit card fraud, online payment fraud, payment fraud prevention, prevent fraud

The modern day of shopping is getting an overhaul. Today, consumers are discovering that they can purchase products and services over the Internet, saving time, money, and fuel costs. However, with these great advancements come higher security risks. Because of the potential for credit card fraudulent activity, American Express has instituted their American Express CID security plan. The American Express CID security consists of a four-digit number. CID stands for card identification number, and this number verifies that cardholder’s in fact have the card in their hands and are not just using a credit card number. Using security programs such as the American Express CID security number helps to prevent credit card fraud, misuse, and abuse. Using other security measures as well as the American Express CID security number can help ensure that your customers will enjoy the greatest security possible when completing their credit card transactions online.

American Express is committed to the security of their cardholder’s. This is why they have enacted the American Express compliance stature. American Express expects all merchants who accept their credit cards to agree to the American Express compliance rules and regulations. In fact, if your business uses a different IT structure, and your site doesn’t comply, you will need to contact American Express and find out what you can do to meet American Express compliance rules satisfactorily. It is the responsibility of the merchant service provider to make sure that they are following American Express compliance rules to limit the chance of hacking or other fraudulent activity.

Labels: american express, american express cid, credit card fraud, data security requirements, prevent fraud