Determining the Validity of a Credit Card Sale Part 1

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Here at National Debit Card Network, we understand how important it is for our merchants to make sure they’re avoiding credit card fraud when handling purchases. In this two part blog series, our own Rich Placa, Manager of Underwriting and Risk Management, offers merchants tips to help avoid credit card fraud.

  • Verify address and CVV code – Verifying the address and CVV code provides the confidence that the credit card is in the possession of the cardholder you’re dealing with and a positive address match should mean that you are shipping the product to an address recognized by the issuing bank.
  • Be wary of suspicious International Sales – If Address verification cannot be performed and it is difficult for your merchant processor to verify the sale in question, ask yourself, does the sale make sense? Why does this individual have to buy the product from you and not someone closer geographically?
  • Stay abreast of fraud trends/scenarios – Take the extra step if approached on a Teletypewriter (TTY) line. Unfortunately, another popular method for taking advantage of a merchant is using this device to shield one’s identity. Look for the warning signs and take the proper steps to verify the sale.