As a matter of routine, the first thing every morning what Michelle Collins (name changed for privacy) does, is check the CRM of a web store she owns, Michelle is a fashion designer and most of the collections available in the store, are a result of her creative talents and a remarkable acumen. The morning of 2nd of March 2009 was very special, it was the beginning of the week and Michelle was thrilled to note that the order section in the CRM was bustling with entries and most of the entries had a shipped marked prominently besides them, with very few entries marked pending .
It was the beginning of the month and a wonderful start, so thought Michelle. Every store owner would be thrilled with a start like that and Michelle was no exception. But the joy & excitement she experienced was not to last, Joliet her store manager barged into the office to inform her that two of the merchant banks had initiated a chargeback totaling $ 30,356.
How Michelle felt at that point of time does not need mention here, a fraudster in the guise of a customer had cleverly manipulated the Proxy and IP settings on his machine to buy merchandise on Michelle's online store, seven stolen credit cards were used to pay for the merchandise, if the online store had a security back-up that offered credit card fraud prevention cover to online stores, Michelle would still be smiling.
Chargeback's and Credit Card fraud dampen every online merchant's enthusiasm, but an alert provided by a back-up company that checks all parameters before forwarding the credit card details to the payment gateways can prevent credit card fraud to a great extent and in the manner more on prevent chargeback's.
Michelle's online store lost $30,356, the fraud was committed with a finesse that could have been tracked by a Merchant Risk Management Service provider or simply MerchantRMS. As a merchant owner of an online enterprise, if you want to keep smiling, then early measures can nullify the intent of a fraudster, whether he is from Nigeria or Pakistan.
more on credit card fraud