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.

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