Stopping credit card fraud altogether seems like an impossible task, and maybe it is. But for your business, you can take safe, wise, and healthy measures to make sure that it never happens again. In order to stop it, though, you must first know what it looks like. It is recommended that you keep a close watch on customers at the point of sale.
A good customer will value the fact that you respect their financial information enough to ask for proof of identity. On the eCommerce side, you can take measures that require more than just the physical presence of the card in the buyer's hand. Here are some healthy suggestions for how to stop credit card fraud once and for all and ensure that it never again becomes a drawback to your business or your customers.
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1) Security checks.
At the brick-and-mortar level, it is very simple to know right away if you are dealing with the true owner of the card. First of all, you should check for a photo ID and compare it to the person, who is standing there trying to initiate the transaction. Once you've done this, you can scan the card and run it through your bank identification number database to make sure there are no alerts set up in the cardholder's name. If there are alerts, there will probably be special instructions for how to confirm.
Follow those instructions, or, if the recommendation is to not accept the card as a form of payment, then obey. Customers, who are victimized by lost or stolen cards, will take the necessary action to ensure that their identity is protected. Respect the action they have taken.
2) Optimize your website for customer safety.
It's not enough to require the physical presence of the card. When you are dealing with an online transaction, you've got to make extra sure that the card number you are accepting is legitimate and not under some form of investigation.