Credit Repair Credit Cards

Useful Tips On Avoiding Credit and Charge Card Fraud

Admin — Sun, 02 Jan 2005 23:11:47 -0800

Useful Tips On Avoiding Credit and Charge Card Fraud
by: John Mussi

Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.

It's not always possible to prevent credit or charge card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility.

Do:

Sign your cards as ...

How To Prevent Fraudulent Credit Card Transactions

Admin — Thu, 30 Dec 2004 03:13:30 -0800

How To Prevent Fraudulent Credit Card Transactions
by: Christoph Puetz

What Are Possible Signs of Fraudulent Transactions see at Web Hosting Companies?

Customer wants to pre-pay for a year
Domain Name Registration for 5 years or more
Orders using free email address providers like Hotmail, Yahoo, etc.
Usage of multiple cards to complete order.
International address. AVS can not validate those international addresses.
Multiple purchases in a short time period.
The customer and billing addresses are different.
AMEX, VISA, and MasterCard implemented a security feature known as “CVV2” and “CVC2”. These are the three-digit or four-digit numbers printed on the back side or front side (depending on card company) of the card (signature panel) to the far right. The three/four-digit code helps to validate that the cardholder has the card in his possession. You can include the code in your transaction processing and need to receive a match to successfully complete the transaction. If you are using a shopping cart for your hosting sign-up process, make sure that it is capable of collecting and processing these numbers. IMPORTANT: The ToS of the credit companies state that you are not allowed to store these numbers.

Use Address Verification Service (AVS) on all US transactions to verify the billing information provided in the order with what is on file with the card issuing bank. As a bare minimum, the zip code should successfully match before the transaction is approved and you hand out the account information. You should retain the response information for some time in case of a chargeback.

The possible AVS messages are:

Y – Exact match on street address and 5 or 9 digit zip code.

A – Address matches, zip code does not

Z – zip code matches, address does not

N – No match.

U – Address information is unavailable or Issuer does not support AVS. These transactions are only applicable for Visa and the merchant isn't responsible for chargeback liability.

R – Issuer authorization system is unavailable, retry later

E – Error in address data – unable to complete check.

G – non-US Issuer not participating in AVS - Visa only. The error messages will vary from one provider to the next. Contact your provider for more information.

S – Address information is unavailable or Issuer does not support AVS - MasterCard only.

The most important warning sign of fraudulent transaction are international orders. It is very sad to be so generic with this statement but the percentage of having a fraudulent orders goes up immediately if the order comes from a non-US location. Be aware of cities or countries with high rates of fraudulent transactions. Malaysia, Indonesia, and most countries of the former Soviet Union tend to be source of many fraudulent orders.

The most effective way to help eliminate fraud or chargeback's is to simply call the customer. A confirmation over the phone is most definitely advised for any large transactions. If you process a fraudulent transaction, not only do you lose the funds, but the product/service as well. A phone - even if it is international will save you a lot of hassle in the long run.

What if you find a transaction to be suspicious? Contact your authorization center and let them know you are concerned about the transaction. They will look at the transaction and may give you advice. You should also call the customer to request additional information (copy of drivers license or Passport as an example). Check the IP address of the sign-up and see where it is globally. Does it matches the customers address at least by country? Send a confirmation email to the customer verifying their order.

It may be a good policy to only accept orders with identical Customer and billing addresses.

Maybe you want to scrutinize international orders as your protection against these consumers is very minimal and not accepting them could be a wise choice for your web hosting business.

Placing fraudulent notices, buttons and images on your web site and order forms will help discourage any person trying to place a fraudulent order. Make sure that the customer will se upfront that you are recoding the IP address and that you will notify the law enforcement agencies if needed. It might not protect you in every case but eventually it will help to cut down the number of fraudulent orders.

This article can be published by anyone as long as a live back link to http://www.webhostingresourcekit.com is provided.

Equal Credit Opportunity Act

Admin — Sun, 12 Dec 2004 03:08:41 -0800

1. To find out the reasons for credit denial.

2. To receive credit in your own name.

3. To refuse to answer questions about childbearing plans or birth control practices.

4. To have equal consideration of all credit criteria, including income between the sexes, in determining creditworthyness.

5. To have alimony, child support, and separate maintenance considered as any other income.

What Are Consumer Reporting Agencies

Admin — Mon, 06 Dec 2004 19:37:42 -0800

The Fair Credit Reporting Act (FCRA) as amended September 30, 1997, regulates the activities of credit reporting agencies. (U.S.C., Title 15 Sec.1601.)

A credit reporting agency, also known as a credit bureau and called consumer reporting agency under this law, means any person or business that assembles or evaluates consumer credit information for the purpose of providing consumer reports to third parties.

Under the Fair Credit Reporting Act, consumer means an individual. You, as the person whose credit is being reported, are the consumer.

Credit Laws: Truth in Lending Act

Admin — Sun, 28 Nov 2004 02:46:05 -0800

This mandates disclosure of information about the cost of credit. Both the finance charge (such as all charges to borrow money, including interest) and the annual percentage rate or APR (the percentage cost of credit on a yearly basis) must be displayed prominently on forms and statements used by creditors. The law provides criminal penalties for willful violators, as well as civil remedies. It also protects you against unauthorized use of your credit card. If your card is lost or stolen and you report it, the most you have to pay is $50..

Credit Laws: Equal Credit Opportunity Act

Admin — Sat, 27 Nov 2004 20:35:51 -0800

This ensures that individuals are given an equal chance to receive credit. It prohibits discrimination on the basis of sex, race, marital status, religion, national origin, age or receipt of public assistance. Lenders cannot ask about your plans for having children or refuse to consider consistently received alimony or child support payments as income. If you are denied credit, you have a legal right to know why.

Credit Laws: Fair Debt Collection Practices Act

Admin — Sat, 27 Nov 2004 20:31:59 -0800

Fair Credit Reporting Act (1971) -- This covers the reporting of debt repayment information. It establishes when a credit reporting agency may provide a report to someone; states that obsolete information must be taken off (after 7 or 10 years); gives you the right to know what is in your credit report; requires that both a credit bureau and an information provider (such as a department store) have an obligation to correct mistakes; gives you the right to dispute inaccurate information and add a 100-word statement to your report to explain accurate negative information; and gives you the right to know what credit bureau provided a report when you are turned down for credit.