Many merchants who use 3rd Party Processing companies have run into problems because company name that appears on cardholder's monthly statements is usually name of 3rd party processing company and not company name of site cardholder made their purchase from. This isn't always case, but in many cases it is. If you use a 3rd party processor, and even if you don't, make sure customer knows what name will appear on their credit card statement at end of month. This will help to reduce any confusion that might would otherwise occur.

#5 Handle suspicious orders accordingly

If an order seems suspicious best way to handle situation is to either call or e-mail customer and attempt to verify that they placed order. As a rule of thumb, if in doubt, check things out. It may be a good idea that if a customer makes an unusually large volume purchase from your site to follow-up with a verification call. This is where a system like IVR terminals, previously mentioned above, can come in very handy.

#4 Watch out for orders using free e-mail addresses

Be wary of accepting orders from people who used a free e- mail address when ordering (i.e. Hotmail, Yahoo, etc.). Tracking people who used a free e-mail address is almost impossible, it's much easier for them to get away then if they used their Internet Service Provider (ISP) or their own company web site e-mail address. To check whether an e- mail address is a freebie or not just take part of address after "@" symbol, add "www" to front of it and see what website it brings up (i.e. joe@yahoo.com = www.yahoo.com

#3 Signatures on delivery

If your business delivers products use a carrier that requires a signature on delivery, and allows you to have a copy of signature. Retain these for your records.

#2 Request fax copies of ID and credit card

You may want to request your customer to fax a copy of both sides of their credit card and driver's license. This tactic usually works best in a B-to-B (business to business) sales environment. While this is not a defense under Visa or MasterCard rules, it is yet another way to deter fraud.

#1 Posting a warning message

Taking time to post a warning message on your order page to those who may attempt to make a fraudulent order will greatly deter number of instances of fraud. Be sure to mention that IP (Internet Protocol) addresses are being logged. IP addresses can come in handy when locating people about fraudulent orders.

Taking measures to deter and eliminate fraud and chargebacks from occurring are a necessity in order to operate a successful online business. Each day companies dedicated to risk management are developing solutions to provide merchants, like yourself, with extra protection because of financial burdens chargebacks and fraud can bestow if ignored.

However, I HAVE returned one product since I started Internet Marketing. Whew - it was BAD! Anyway, what if you spend your very hard-earned money on something, and it's truly a bad, horrible product. It doesn't provide what it was advertised to provide; it's horribly written; it's just plain BAD!

As a matter of fact, it's so bad, you honestly feel taken. You ask for your money back, only to find - NO GUARANTEE! Or you bought ebook or other product 45 days ago, and your guarantee ran out after 30 days!

Not only does this make you angry, but are ever going to buy from this person again? Of course not!

So be fair to your customers. Provide kind of guarantee YOU would want.