How Online Merchants Can Prevent Credit Card Fraud

Who pays for fraudulent charges?

In almost all cases, the merchant pays.  In fact, the credit card company can make a profit on a fraudulent charge, since they charge back the full amount to the merchant, charge the merchant a charge-back fee (typically $10-$25 per charge), and may still try to charge the cardholder for the $50 they are responsible for.

Is credit card fraud growing?

Almost all surveys show that there continues to be a rapid growth in credit card fraud. The causes are more online and telephone sales, where the cardholder is not present, and greater sophistication by credit card theft rings.

How can I protect myself?

Copyright 2000 Raymond S. Kulzick. All rights reserved. 001224.

This publication provides business, financial planning, tax, and/or other related information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance. We do not provide legal advice. If you have a legal question, contact an attorney. Read Disclaimer.

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Copyright 2000 Kulzick Associates, PA - Last modified: September 13, 2008