small business tips

How Can You Avoid Costly Chargebacks For Your Mail Order/Telephone Order Or Internet Merchant Account?

It is extremely important for you as a merchant to implement precautions when accepting these types of credit card transactions due to the risk that the card is not present. The most common chargebacks are identified as:



Fraudulent mail order/telephone order or internet transaction

Fraudulent transaction – no cardholder authorization



These chargebacks can be avoided through the following risk control measures:



Negative Database – By developing a negative database, you can identify

High-risk transactions and block specific credit card numbers within your

System, disallowing future purchases. This way you can control multiple orders or use of your service that could later result in a dispute. There are other risk-control tools that may suit your business, including setting customer access controls by limiting the number of transactions per hour, day, or week.



Address Verification Service & CVV – The Address Verification Service (AVS) and CVV helps You make a more informed decision about transactions by verifying the address the cardholder gave you at the time of the sale as well as the last three numbers printed on the back of the credit card. After comparing the address and CVV against the information in the card-issuer database, the authorization system sends back information advising you if there was a full, partial, or no match on the address as well as a match to the CVV. This allows you to make a better decision about whether to continue the transaction.