Article: The Cost of Fake Credit Cards
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"Stand On Guard Against Fake Credit Cards and Fraudulent Transactions"
The Cost of Fake Credit Cards
It is the nightmare of every small business owner and home based business owner to get caught up in credit card fraud, its attendant charges, the loss of inventory involved, not to mention the loss of customers whose information has been stolen. It seems that when companies devise methods to protect businesses from fraud, some hacker comes along to undo it. What's the answer for these small business owners? Do it yourself analysis? Only a small business owner would have the time to screen credit cards, whereas medium to large enterprises would not. Don't accept credit card purchases at all? Unthinkable, since much of life is lived and paid for online, which is where the credit card fraud blossoms into the nightmare.
The Face of Fraud
Fake credit cards look just like any other credit card. Amex credit card numbers begin with 3, Visa credit and debit cards begin with 4, Mastercard 5 while Discover begins with 6. They each contain sixteen numbers, twelve of which designate the issuing institution's information as well as the account number. According to the Luhn or Mod 10 method, every other number when doubled with the exception of the check digit, which is the last digit in the credit card number, then added together should total a number perfectly divisible by ten. If it doesn't add up, it's fake. Realistically, no one has time to do this with every credit card but most especially online, where the problem is truly located.
What to Look for Online
When processing an order, the small business owner and the home based business owner can spot a few things that don't add up. These can be the harbingers of credit card fraud and bear investigation.
- Billing and shipping addresses are different.
- New or first time customers who order huge amounts of merchandise and pay for it with multiple credit cards.
International orders.
- Rush, overnight or express shipping requests.
Things like these should raise flags and sound off sirens at the small business owner and the home based business owner taking credit cards for purchases. Calling the customer to ask if he placed the order, calling the bank to check if the card is legitimate and matching up customers with their email addresses are just a few methods of protecting themselves that business owners can take.
Business Services
Small business owners have looked into this, but the home based business owner might not have heard of it. In order to take credit cards for purchases, a business service is used to connect purchaser and merchant to the bank, doing it all securely. This post is an excellent introduction to minimizing the cost of fraudulent transactions and fake credit cards.
This article was written by David Spader, a freelance writer who normally provides savings accounts reviews over at SavingsAccount.org. He recently wrote about the best CD Rates available right now.
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