Working with a reputable online payment facilitator is crucial to preventing this problem. With their assistance, you can put the proper safeguards in place to avoid fraudulent activity.
Are you serious about stopping fraudulent payments and chargebacks? If so, consider the great tips below.
The Right Payment Facilitator Is Crucial
Using a reputable payment facilitator is vital to protecting your business from fraud and chargebacks. This provider can set up secure payment portals and offer encryption, tokenization, fraud filters, and transaction monitoring features.
These tools work together to help detect potential fraudulent activities. To further enhance security, the payment facilitator should provide access to a secure dashboard from which you can view transactions, dispute chargebacks, and contact customer service.
The Importance of Monitoring Customer Activity
Monitoring customer activity is critical for identifying and preventing fraud and chargebacks. Payment facilitators can provide monitoring features that help detect suspicious activities before they become problematic.
Here are some of the key activities to look for:
- Multiple payments from a single IP address or device in a short period
- Unusually large purchases
- Payments made with multiple credit cards
- Purchases followed by an immediate reversal of the same amount
- Suspicious customer details, such as a name or address that does not match the billing information
- Unusual payment patterns like multiple payments for the same items from different customers in close proximity.
By monitoring customer activity, you can identify any suspicious patterns and take action quickly to protect your business.
Check For Address Discrepancies
Businesses can further protect themselves from fraudulent transactions and chargebacks by checking for discrepancies between billing and shipping addresses. Shipping to a different address than the one associated with the payment method is another common tactic fraudsters use. This is done to hide their identity or avoid being tracked down.
Therefore, businesses should take extra steps to verify the addresses customers provide. If there is any doubt or inconsistency, it’s best to follow up with the customer before shipping the product. This simple step can help prevent fraudulent transactions and reduce chargebacks.
Put a Limit On Charges
Limiting the amount that can be charged in one transaction or over a certain period is an essential step businesses can take to protect themselves from fraud and chargebacks. This strategy helps ensure that large amounts of money are not transferred simultaneously, which could signify fraudulent activity.
For example, setting a limit of $500 per transaction or $1,000 over one week could be effective. This amount will vary depending on the size of your business and the average purchase price of your products or services.
Need a Payment Facilitator?
Want to reduce payment fraud and chargebacks? If so, you need to work with a reputable payment facilitator!