This downloadable article suggests preventative
methods and post-order procedures that merchants can perform to minimize credit
card fraud. When a brick and mortar merchant accepts a credit card, and the charge
is authorized, and assuming the merchant conforms to regulation, the merchant will
get paid, even if a stolen card is used.
Liability for fraud shifts from the card issuer to the merchant for 'Card Not Present'
sale (mail order, telephone/fax order, and internet sales). The merchant is generally
liable for credit card charge backs, even when the bank has authorized the transaction.
After a merchant is stung by a fraud, the credit card processors often hike their
rates, citing increased risk. The merchant also risks losing their accounts with
the card companies if their fraud rate gets too high.
For the complete Word Doc. Information.