I do have 2 questions about this topic

1. How do you protect yourself from credit card fraud?

2. In spite of protecting yourself, what can you actually do if you are the victim of such a fraud? Can you do anything really? All I can think about is to find out how it happened and try to correct the flaw if possible. Also maybe ban the credit card number that was used as well as the IP address it was coming from.

Thank you

1. To defend against credit card fraud, it is advisable to review every order that comes through - either manually (if possible) or by implementing automated order scrubbing tools.

You'd want to use tools such as AVS, CVV, IP-based cross checking, checking the bank BIN of the card vs. the customer's geographic location, looking at the address on the domain name and then - doing an actual phone verification call.

All of the above can be automated with a service like Fraudgate.com or you can manually do it on a per order basis, but by taking the above steps you will significantly reduce your chances of a fraudulent order.

If in doubt about any order, you should be able to talk to your merchant processor and get their opinion on the transaction.

2. If a fraud order still gets through - if you find out about it prior to getting a chargeback, you should issue an immediate credit return to remove any chargeback liability on it.

In most cases, there is little that you can do to pursue a fraudster after the fact. You could certainly ban their IP address although there is a good chance it is a dynamic IP so that wouldn't really help.

[Also maybe ban the credit card number that was used as well as the IP address it was coming from.[/b] and what If the Cardholder is then a real potential client. I'd say banning the IP address would be enough, althought as cdg mentioned, If it a dynamic one so it won't help you that much.

You can Review each order manually, pass the order to fraud check tools, and make a phone verification with the phone number listed on card. i think that will reduce the chance of a fraud very much. even if taking some time from you.