Before all the necessary information is gathered from the client, we ask not to issue any products/services.
The merchant is responsible for legitimacy all the transactions made in the web-environment. The merchant must take all possible measures to prevent fraudulent transactions in his web-environment. It is important to follow the principle “Know your client” which involves collecting relevant information regarding your online shop from clients and preserving documents related to transactions.
To prevent fraudulent transactions, the merchant must monitor actively and constantly its online shop/webpage transactions and keep in mind the following points:
1. Clients delivery addresses. If the delivery address is different than the clients/payer address and delivery address is a hotel, guesthouse, international postal mediator service or post-office box or the products are usually delivered to Estonia or to the Baltics, but the delivery address is outside the usual area, the merchant should contact the client. It’s also important to keep in mind whether the repeating names and addresses are the same.
2. Frequent transactions form the same person. If there are very frequent transactions from one person/one IP address, then it is basis for contacting the client and asking additional information. Extra attention should be shown to clients, who have several unsuccessful transactions and finally a payment comes through. This means there might be different credit cards used or other sort of fraudulent activity.
3. Client contact info. Merchant must be able to contact the client to specify transaction details and therefore the online shop/web-environment must preserve as much information as possible of the client. The necessary information includes client name, a working e-mail, contact phone number, delivery address, note box when placing the order. In case of incomplete contact information it should be specified and if that’s not possible, make a refund without sending out any merchandise.
4. Very large amount of merchandise. If an order of an unusually large amount is made in the online shop, then the merchant has a right to ask for clients identification document copies. Extra carefulness is advised with new clients, who order big amounts of merchandise which is easily re-sellable.
5. Orders from unusual location. Like with delivery addresses, it is necessary to pay attention to orders coming from unusual locations, especially outside of Europe. In case of any suspicions the online shop should contact the client and ask for additional information and copies of identification documents.
In order to avoid card transaction chargebacks:
- Contact information and customer support. Merchant contact info must be easily findable and correct in the online shop/web-environment, so that the client could contact the merchant directly in case of any questions.
- Terms and conditions of purchases, returns and deliveries. If clear, thorough and easily findable terms and conditions are on the online shop/web-environment page, it minimizes the risk of chargebacks.
- Order confirmation. After confirming the order, it’s best to send the client an e-mail to the address they provided and another confirmation after issuing the merchandise, where merchants, orders and delivery address information is brought out.