Key Points to Remember with E-Commerce transactions
Selling on the internet (especially using credit card transactions) does have it’s pitfalls. But by adhering to some common sense rules, the risk of chargebacks and fraud can be reduced. Nedbank ( see nedbank.co.za ) supplied some key points below, as well as Jonathan Smith from Payfast ( see www.payfast.co.za ):
- The bank is powerless to assist the merchant in the event of a dispute other than for a fully authenticated or attempted 3D Secure transaction. (transaction codes 5 or 6 for Visa and 1 or 2 for MasterCard should give some peace of mind, but only for normal consumer type cards in wallet not Business, Corporate or Lodged cards. 3D secure does not work with American express or diners Club cards either.)
- Obtaining an authorisation code does not guarantee settlement by the bank. An authorisation merely means at the time of request, that the card had adequate funds in it, and had not been reported lost or stolen and is not in arrears.
- Be careful of cancelled transactions. Frequently after a transaction has been processed, fraudsters often cancel that transaction. However, it may also be for legitimate reasons that a transaction is cancelled. In this event, you are required to reverse the transaction on the original card number. Do Not refund the transaction on another card number and Do Not make a deposit to a nominated bank account. To do so is in contravention of the merchant agreement and nullifies Nedbank’s ability to defend you.
- Be careful of the same card number being used repeatedly at your website.
- Be careful of repeat purchases being made from the same IP Address or computer.
- Be careful when the client requests use of their own courier or delivery service. As a merchant, you are required to ensure delivery of goods. If you do not use your own courier, you lose control of ultimate delivery performance.
- Be careful of someone wanting to collect the goods. Why then did they not just come to you and purchase the goods and present their card in the first place? In this event, limit the collection agent to the card holder which will allow you to take an imprint of the card and get the clients signature. Also make a note of vehicle registration details.
- In the event of a big order (high value payment) with an unknown client, nothing stops you requesting part payment or a deposit up front via EFT. Money transferred by EFT will invariably confirm the bona fides of a prospective client. If you are suspicious of this transaction , then either insist on a fully authenticated 3D transaction or an EFT.
- Be wary of that “spectacular sale” that will add great value to your business. “Too good to be true” is frequently just that, so trust yout intuition.
- When unsure of a transaction, contact the authorisations centre of your payment gateway.
- When requesting customer details, insist on a land based telephone line as primary contact.
- Be particularly alert when requested to make foreign deliveries. Ask some pertinent questions here;
- do you know your client?
- who are you dealing with?
- have you checked them out?
- Be particularly alert with large transactions coming from a “free domain” like G-mail, Yahoo etc. Consider that well to do clients who typically would be making large transaction, would most likely have a personal or a business e-mail address.
- On the web page, detail in bold print that “all card transaction processed on this website will be processed via the 3D secure mechanism,” This alone may deter fraudsters.
- Check the case of name entry eg: JOE SOAP or joe soap, Fraudsters do not identify with the fake name they use, and will frequently not bother using the correct case.