Safeguarding Your E-Commerce Platform from Cyber Criminals: Part 3

Steps to Fortify Your Online Store

1. Avoid Automatic Verification Services for Shopping Carts

Many service providers claim to handle your processing needs. They ask you to direct your customers to a verification or credit card purchase page they provide, and the money is automatically deposited into your account. However, we recommend creating your own shopping cart. When an order is placed, you receive an email with a link to a webpage printout of the order. You can then use the software provided by your merchant provider to input the information for verification via modem. Your credit card verification should be either software-based or through telephone verification, giving you control over the transactions you approve.

2. Scrutinize Every Order

Examine each order carefully. Does anything seem off? Is the order unusually large, such as someone ordering 200 computer monitors? There's a high likelihood that it's fraudulent. Is the email address provided from a free email service? Are the shipping and billing addresses different? Is the order being shipped overseas, but the credit card billing information is in the United States?

3. Contact Every Customer

We recommend calling every customer who places an order. For a small cost, you can call the customer and the toll-free number of the bank that issued the credit card to verify every order.

4. Explain Your Security Measures to Customers

When you call the customer, explain that you've experienced a lot of credit card fraud on your online store and that you're taking steps to protect them. Ask them to provide the toll-free number on the back of their card and the name of their bank. This conversation also allows you to build rapport with the customer and reassure them that their order is being handled by a real person.

5. Verify the Order with the Bank

Call the toll-free number provided by the customer and explain to the bank that you're an online merchant verifying the validity of an order. You can provide the billing address given by the customer for the bank to confirm.

6. Keep Records of All Transactions

Make copies of the order, the verification printout, and the invoice. File these away safely. You'll be surprised how often you'll need these documents when customers attempt to chargeback, claiming they never made the transaction. If you don't keep these records, you stand to lose.

7. Use Additional Verification Methods for Large Orders

For orders exceeding a certain amount, you can fax the customer a copy of the credit card slip for them to sign and fax back. You can also ask them to make an impression of their card details on a blank piece of paper, sign it, and fax it back to you.

Additional Tips

If a customer pays by check, make a copy of the check, attach it to the invoice, and store it safely. While online stores may seem like an easy way to make money, not communicating with your customers and not utilizing the services of Visa, Discover, Mastercard, and American Express can be detrimental. Stay tuned for the next part of this series where we'll provide more resources to further secure your online store.