Monitoring Cardmember behaviours and circumstances can help prevent you from being victimized by fraud. We know our Merchants are conscious of circumstances that may indicate a fraudulent scheme or suspicious behaviour that may flag fraudulent transactions. If you choose to accept American Express, we’ll arm you with tips to help protect your business in these situations:
Suspicious Behaviour when the Card is Present
A suspicious situation may arise, causing you to question the authenticity of the Card, or the legitimacy of the person presenting it. Risk indicators may include multiple factors:
• Orders containing many of the same items
• Orders shipped to an address other than a billing address
• Orders using anonymous/free email domains
• Larger-than normal transaction dollar amounts
• Orders sent to postal codes or countries where you show a history of fraudulent claims
• Orders of a "hot product" (i.e., highly desirable goods for resale)
• Customer is a first-time shopper
• Customer is purchasing large quantities of high-priced goods without regard to colour, size, product feature, or price
• Customer comes in just before closing time and purchases a large quantity of goods
• Customer wants to rush or overnight the order
• Customer has a previous history of Disputed Charges
• Customer is rude or abusive toward you; wanting to rush or distract you
• Customer visits your business to make small purchases with cash, then returns to make additional purchases of expensive items with a Card
When the Card is not Present
Mail order, telephone and online transactions carry a higher risk of fraud because the Card is not presented. Following these guidelines for Card Acceptance and authorizations can help.
1. Ask for the Cardmember’s name exactly as it appears on the Card.
2. Request the Card Account number and expiration date (valid date).
3. Request Cardmember’s home or business phone number and billing address.
4. Verify Cardmember information via one of our verification systems.
5. Acquire shipping address and name (if different from billing address).
American Express recommends shipping to the Cardmember's billing address to avoid a Chargeback should a Cardmember Dispute the Charge.
Other things you can do:
• Require the Cardmember’s signature upon delivery
• Require the Card to be presented if mail/telephone/online orders are to be picked up at retail locations
• Validate the order by contacting the Cardmember. Check the telephone directory if possible to verify telephone number
• Identify each business model: online sales, telephone sales or catalogue sales by authorizing each model through a separate Merchant number
• Select carriers that do not allow shipment re-routes
What to do if you ship merchandise?
• If you fulfill an order more than 30 days after the original Authorization, contact again for a new Approval
Code before mailing the merchandise to the Cardmember
• Charges cannot be submitted for payment until the merchandise is shipped