Accept Payment Online

Fraud prevention has become a high priority for many online businesses. Although much exposure has been given to instances of fraud involving the customer (for example, online purchasers who have had their credit card number hacked), Internet businesses have also been victims of fraud by criminals posing as customers. It is therefore of great importance to understand the ways in which you can accept payment online without falling into the trap of hackers and online criminals looking to make a 'quick buck'.

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The first thing you should do when you accept payment online is to verify your buyer's identity. How you can do this online by getting your customer fill in their credit card details in an online form. This form should require them to provide their billing information. Your account provider - the one you have engaged to help you operate and run your service of accepting payment online - will then send the given information to the payment processor for authentication.

Once verified, the information (including the billing address) is passed on to the bank that will then try to find the corresponding address information in their records for that particular credit card number. An address verification or AVS will then be sent back to inform your payment processor if the card information is authentic or a fraud.

It is up to you, the business owner, to make the decision on whether to accept payment online and send your products to the purchaser if the postal code provided by the customer does not match with the postal code in the bank's records.

Do note, however, that this system of customer verification may have certain restrictions that will limit the level of security in accepting payment online. Inaccurate results from the AVS can and do occur. Although it is a good method to help you prevent fraud, you should not rely solely on this method alone when trying to verify your customers and accepting payment online.

Another way of help you prevent fraud when you accept payment online, is to use card code program commonly offered by major credit card companies. This uses a three or four digit security number that is issued at the back of every credit card on the signature strip. Doing this will help authenticate a genuine card. The process of verification is carried out in a similar manner to the AVS approach as mentioned above.

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