One of the greatest security concerns of most online merchants is something that’s not touched on by PA-DSS solutions or PCI requirements: credit card thieves who make purchases tied to a verified billing address, but have the merchandise shipped elsewhere.
It’s a scenario that’s a bit trickier to police than you might think. Nowadays, more and more people are shopping online, but in many instances they’re having merchandise shipped to other locations. Think of the convenience of holiday shopping, and the endless possibilities suddenly rear their not inconsiderable heads. So what can you suggest to your clients as a method of cutting down on the potential for fraudulent purchases?
Shipping Only to Verified Addresses
This isn’t a 100% foolproof method of ensuring that all credit card purchases are legitimate, but it can have a dramatic impact on the risk of fraud. The only problem is, will your client be willing to limit their customer base to only receiving packages at a single verified location?
Contacting the Customer
Making direct contact with a customer via phone to verify they’ve authorized shipping to an alternate address may be the best possible option your clients have to snuff out potential fraud. While some customers may find this a pain, the majority will appreciate the extra effort.