Credit card fraud is actually a bigger headache for merchants than it is for customers. If a thief steals someone's credit card and orders thousands of dollars worth of merchandise, the merchant pays for the loss, not the owner of the stolen credit card.
So if you're a merchant, be extra careful when accepting credit card orders. To help protect your business, follow these guidelines:
Validate the full name, address, and phone number for every order. Be especially vigilant with orders that list different "bill to" and "ship to" addresses.
Watch out for any orders that come from free email accounts (hotmail.com, juno.com, usa.net, etc.), which are easy to set up with phony identities. When accepting an order from a free email account, request additional information before processing the order, such as an alternate email address, the name and phone number of the bank that issued the credit card, the exact name on the credit card, and the exact billing address. Most credit card thieves will avoid such requests for additional information and look for a less vigilant merchant to con.
Be especially careful of extremely large orders that request next-day delivery. Thieves usually want their merchandise as quickly as possible—before they're discovered—and don't mind adding a bit to the overall charge, which they aren't planning to pay anyway.
Likewise, be careful when shipping products to an international address. Validate as much information as possible by email or, preferably, by phone.
For more information about protecting yourself from credit card fraud and other online thievery, visit the AntiFraud website at www.antifraud.com.