Card Acceptance Best Practices for Internet & Card Not Present Merchants
Ensure the billing statement name exactly matches the service establishment name. This includes limiting confusion by matching the web address name.
Ensure the required MCC (merchant category code) or SIC for each product matches the product delivered.
Make sure you are implementing AVS (address verification service). This service provides you chargeback protection. You want to verify the billing address, not the shipping address. For the most security, you will also want to ship to the billing address if possible and get your customers to sign for receipt.
Clearly state up front what you are selling, as well as what your billing, return, and shipping and out of stock policies are. Do not bury these policies deep within your site. Be open and up front.
Display both customer service phone numbers and email service addresses in prominent positions and promote their use by customers with questions about their order or product.
Be cautious of first-time orders with large quantity and overnight delivery request.
When taking cardholder information, ask for card type not just card number. Fraudulent use may result in someone with a card number, not the card and who doesn't know the type of card they have.
Always submit valid card expiration dates.
Build internal fraud avoidance files that track fraud by monitoring normal purchasing patterns and red flag those that are abnormal.
Watch for repeat orders in a short period of time. Fraud transactions will send a trial balloon transaction and if accepted will use this card to move in for the kill.
Watch free email accounts. They are commonly used by those who wish to hide their identity.
Protect your reputation as a safe place to do business.