It
is your responsibility as a merchant to verify credit card transactions
before sending out merchandise. There are several ways you can limit
fraudulent transactions:
- Ensure that the address
verification system result produces a match and do not send merchandise
to customers whose entered address does not match their billing address.
- Check the cvv/card code to ensure it matches.
- Do not send merchandise to countries where fraud is prevalent such as Nigeria, Malaysia, etc.
- For extra large orders consider additional verification such as the faxing of a drivers license etc.
- Use a fraud screening tool such as Maxmind, available under "General-->Payments-->Fraud Control".
Please note that even if your
payment gateway accepts a transaction this is not a guarantee that it is
not actually a fraudulent transaction and a chargeback CAN still occur.
It is important to protect yourself by doing double checks on both the
AVS and card codes.
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