The following are indicators of potentially suspicious Internet & MOTO transactions.
- Unusually large orders
- Orders for multiple quantities of the same item
- Customers who place a number of orders within a short space of time
- Customers who place orders using multiple credit cards, especially where the first 12 digits of the card are exactly the same and only the last four are different
- Orders placed where the first card offered is declined, and a second card is immediately offered
- Orders requiring urgent shipping
- All overseas orders, especially where the order is from a country from which you don’t usually receive orders
- Orders shipped to a country where the goods could easily be purchased locally. The question must be asked why the purchaser is prepared to pay the shipping expense, and wait longer for the goods to arrive
- Orders from Internet addresses using free e-mail addresses, (eg. Yahoo, Hotmail)
- Orders requesting delivery to a Post Office Box
- Orders requesting the goods to be shipped to a third party
- Orders where the only contact number provided is a mobile phone
- Orders for goods not normally supplied by your business. ( eg, mobile phones, Laptops, televisions etc )
- Any requests for funds to be charged to the card then monies to be sent to them through western union should not be honoured. ( eg monies to be sent through for travel agent fees, charities etc )
- Phone orders where the person ordering the goods is not the owner of the card, particularly if an overseas card(s) is used
While dealing with customers from overseas it is advised to avoid shipping orders through to the following
Countries due to their high volume of fraudulent orders.
Reducing Your Risk
You can minimise the possibility of fraudulent purchases and chargeback’s from Internet & MOTO Transactions by implementing the following measures, However these are just ways of reducing your risk of
fraud and does not guarantee that the transactions will be genuine.
- Ensure The Billing Address and delivery address is consistent
- Obtain a signed receipt from the cardholder when the goods are delivered. (if within Australia)
- By asking for a photocopy of the back and front of the Credit card, and the verify the details of the credit card by contacting extension 500 on 132 415 option 1.
- Don’t continue to attempt authorisation after receiving a decline.
- Exercise particular caution in relation to overseas orders. Large orders should in all cases be held back for shipping while the above enquiries are made into the legitimacy of the purchaser. Merchants should not ship goods until satisfied that the purchase is legitimate.
- Use your common sense, if the goods would be readily available and for the same or smaller price in the country the order is from ask why they would be ordering it from you. eg mobile phones or computers to Indonesia etc
- Authorisation Does Not Guarantee that the Transaction in Question is Genuine. Authorisation means that the account number is valid, the card has not been reported as lost or stolen and that there are sufficient funds available to cover the transaction. Although it is very important to obtain an authorisation for every transaction, it does not protect you from risk of fraud or chargeback’s. The risk of fraud remains even though authorisation has been obtained.