Understanding CVV Numbers on Credit Cards
If you are in the mail order or telephone order or e-commerce business it is crucial that you take precautions against chargebacks and unauthorized transactions. If you do not it could cost you dearly because the burden of proof is on the Merchant when it comes to disputes.
Many business owners ask for tips on how to make online transactions more secure. One thing to enforce is the CVV number. It is a three or four digit security code on your credit card. If your customer is prompted to enter that and it matches the security code on file the transaction goes forward, if it doesn’t match it is flagged and the transaction is halted. The only drawback to this free feature is that thieves can easily have access to the security code number if they have your credit card, if they have only stolen the number this service works well.
Another way to secure you online transactions as a company is to make sure you are aware of and using the AVS (address verification service). Once again this is a free service company’s need to make use of. This feature checks and monitors that billing addresses for online transactions match the billing address the bank has on file. This way a stolen credit card could not be used unless the person had access to the owner’s mailing address. It cuts down on fraud but does not completely stop it.
For the tightest security around you should use a sign-on-delivery service with ID verification. Coordinate this with your shipping company and you have a secure online option for your business.
If you follow the above tips you should be able to greatly reduce your chargebacks from your merchant account provider. This is key because if you end up with too many chargebacks you find your account terminated.
