Fraud Overview - There are a number of ways to detect Fraudulent transactions when doing internet sales. Once you are familiar with the Patterns they can easily be detected. Video Demo Click here!
New Companies & Excitement  - One of the most common things that crooks do is to test the waters to see what they can get by with. Small companies tend to be so excited by the fact that they are getting orders that they overlook the most basic do's and don'ts. Most crooks order small orders once or twice with a fraudulent card to see if you will care that the credit card response comes back with a  "No Match" status. When processing a credit card, the response code should be strictly adhered to in-order to prevent fraud. It is truly your only defense against people trying to take advantage of your company. When the response code from the credit card company is an "Exact Match" that means that the address and customer name match what is in the issuing banks database. This is typically a great sign as long as you ship to the address that was the "Exact Match". If you choose to ship to an address other than the one that was a match then you just violated the terms of agreement with Visa/MasterCard and you basically no longer have protection because you did not ship to the address of the card holder. The bottom line is if you want protection, ship to the billing address of the credit card and you "may" have some protection. Reality is, all internet orders have risk regardless of where you ship the order to.
CVV codes protect your company  - When you require the CVV code on the back of the card it helps your protection significantly. The CVV code is the 3 or 4 digit code on the back of the card. That is the actual security code that ONLY the card holder has access to. Even the credit card companies do not have that code on file. This means that the only person that can accurately quote that code is a person that has the card in their hand. Keep in mind that this may not matter if a crook has the card in his hand but in almost every case the crook will NOT know the address, the name on the card and the cvv code at the same time.
What we recommend - Very Simple, PayPal. PayPal has the best fraud protection of any credit card processing setup that we have seen. They offer incredible protection because they can monitor the customers usage and they can weed out the individuals that do not follow the rules correctly. When a dispute occurs, PayPal has the ability to dispute the two parties correctly and from what we have seen their decisions typically work out in favor of the party that is correct. We do not have any affiliation with PayPal at all. We are just stating the facts. MasterCard and Visa have shown us that although they are the largest card processor they offer the least protection. AMX & Discover offer good protection and they are recommended as well.