Credit card fraud is a matter of great concern to both, the cardholders, and us - the merchants who sell the merchandize. A majority of credit card frauds is carried out online. A majority of the Internet businesses agrees that such frauds are the most significant problems their businesses face. The increasingly sophisticated encryption systems, verification services and transaction-processing technology, are making such frauds more difficult.

Safeguarding My Business against Credit Card Fraud Here is how I safeguard my business against credit card fraud:

Ask for identification - I always ask for identification from the customer. Credit cards are usually not valid until signed. If presented with a card without a signature, I point this out and ask to see the ID to verify the signature.

Being aware of the credit card's safety features - Many credit cards have built-in safety features to protect the cardholders and the merchants against fraud. I check the credit card presented to me for:

- A hologram that changes color in the light.

- An embossed account number on the front of the card that matches the number printed on the back.

- A magnetic stripe that transmits specially coded information.

- A signature panel that resists erasure and protects the cardholder's signature.

Use the AVS - I always use the Address Verification System (AVS) before shipping out the goods. The system checks the address with the card-issuing bank to ascertain if the figures match. It is very simple to use and the information received by me helps me make an informed decision about the transaction.

Taking an Active Role in Credit Card Fraud Prevention As a merchant, I can do a lot to prevent credit card frauds. I take a few simple precautions, such as matching the signature or account number on a customer's credit card. As a merchant, I am the first line of defense against such frauds.

Jon Sterling tries to help you overcome Credit Card Fraud problems through informative articles to help you reach your personal financial goals.

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Jon Sterling tries to help you overcome Credit Card Fraud problems through informative articles to help you reach your personal financial goals.