Many Internet merchants desire to expand their businesses and potential profitability by going global, and engage in the practice of international credit card processing. While aware of the greater risks that they may be victimized by fraud, such business folks do not want to lose possible worldwide orders and choose to accept credit cards from outside the United States.
In the course of doing business, merchants who sell internationally may very well run into suspicious orders. Confronted by uncertainty, these owners must perform their due diligence and need to put a microscope on any order that arouses the “hmmm mindset.” One of my clients, for example, just called this week to ask about a series of orders she received from Norway. I was actually relieved that the client wanted to know what to do – especially before she shipped out the product.
The following lists advisable safety protocols to enact when decided whether to fulfill a suspicious International order:
- Compare the IP address country with the billing address country – The IP address associated with the transaction may be obtained and should ideally match the country where the product is to be shipped. (I understand that an anonymous proxy server can be used to place the order, hiding the IP address, but it’s still worth investigating.) Of course, in rare circumstances, the two will not match, but it’s unlikely that someone would place an order while away from home. This is especially true when expensive items are ordered.
- Look at the card issuing bank’s country and compare it to the billing address. Again, based on the information passed by the “customer’s” credit card, the merchant account provider may be able to report the card issuing bank. In the case above, our technical department representative was able to tell me that the card issuing bank was Teller As, located in Oslo, Norway (a match).
- Check to see the email address that was used in the transaction – A free email address, obtained from hotmail or yahoo, for instance, is associated with a greater likelihood of fraud. It’s virtually impossible to trace an individual who uses an anonymous, free email address.
- Investigate where the product is to be shipped. Think at least twice before sending merchandise to a PO Box or a ship-forward service. Sending product to a home address is safest but by no means a guarantee that the order is legitimate
- Contact the alleged customer and ask him/her to fax or scan a copy of their credit card and a picture ID. The name on the card and the name on the picture ID document should match. Many business folks, like my client mentioned above, are reluctant to ask for this type of information, believing that it is an encroachment on the customer’s privacy. However, the motto that it’s better to be safe than sorry is apropos – especially when facilitating International credit card processing.
- Finally, you can contact your processor and request the customer’s full credit card number. It may take a day or two to receive the information but once you have it, you can connect with the customer’s card issuing bank and inquire directly with them. It’s very possible that the card issuing bank will cooperate and let you know whether the name associated with the cc number matches your records. The bank can also tell you if the card has been reported stolen or has been flagged as a result of suspicious activity. Such developments may have occurred after the transaction.
International credit card processing offers greater rewards but definitely more risk. By following the aforementioned suggestions, you’ll be in a much better position when evaluating the authenticity of an International transaction.
