The Green Sheet is a wonderful resource for merchants.
This article is full of info on how to avoid fraud. http://www.greensheet.com/emagazine.php?story_id=3208
"With the ever-growing problem of identity theft, fraud is of increasing concern to merchants, especially those in the MO/TO and e-commerce categories. Some merchants take an unreasonable approach and say they want a 100 percent guarantee that if they do next-day or same-day delivery with customers they don't know, they'll never have a chargeback. To that, I reply the dream factory is located in their nearest casino.
Nowadays, it's relatively easy for thieves to make credit cards and enter data they steal via skimming. Machines to make physical credit cards can be obtained for as little as $865. MO/TO and e-commerce merchants are prime targets for these identity thieves.
So how are merchants supposed to know if a new client's credit card is legitimate? I suggest they take the following steps:
- Determine whether the cardholder's street address, ZIP code and cardholder verification value match the information given by the purchaser.
- If the information matches - and only if it is a physical delivery - require the cardholder's signature with delivery.
- Have cardholders sign credit card authorization forms, provide copies of their driver's licenses, as well as the front and back of credit cards.
If a cardholder doesn't have ready access to a fax machine, one company has devised a way to get signature and ID images. RightSignature LLC (https://rightsignature.com) provides the technology to enable customers to create digital signatures online...