Businesses that accept payments in card-not-present settings need to implement into their card acceptance procedures for reviewing suspicious transactions a cardholder verification process. The process of verifying the validity of the transaction activity must be cost-effective to justify implementing it in the first place. Merchants that operate mail order, telephone order or eCommerce businesses must develop call verification procedures in a way that addresses the need to identify potential fraud while leaving legitimate customers with a positive impression of their organizations. There are a number of services that are available to merchants today to assist them in their efforts to verify the validity of the information that their customers provide.
You should consider implementing the following:
Telephone Directory Assistance Services. A simple 411 call may give you information on who a particular phone number is registered with and at what address. It can provide a phone number for a business or a person which you can compare with the one provided by your customer.
Online Search Services. Most of the 411 telephone services are also available on the internet, as well as a number of other tools that will quickly enable you to verify the validity of provided phone numbers and addresses.
Many online search services are free and there are powerful paid search tools as well.
Card Issuing Banks. You can contact the bank that issued the card used in the transaction that you are reviewing and verify the provided information. When speaking with the bank representative:
Confirm name, address and telephone number associated with the card number.
Inquire whether a recent address change has been made.
Call the Cardholder. Call the cardholder directly to confirm the transaction and resolve any discrepancies. Inform the customer that you are making the call as a protection against possible fraud.