Posted on: 03 December, 2001
Author: Lynne Schlumpf
Thanks for joining me for Part 2 of this ... article about how to saveyour store from online ... a scenario that will help you identify who is savvy to credit ... and who isnot. Thanks for joining me for Part 2 of this important article about how to saveyour store from online thieves.Here's a scenario that will help you identify who is savvy to credit cardfraud and who isnot.Let's say that John Smith runs an Internet store that sells books. His storeis called Leaflets for Life. Customers order, then he ships the product afew days later.We have another Internet store owner named Joe Black. He runs a computerparts storecalled Laptops 4 U.The owner of Laptops 4 U is aware that his merchandise is THE HOTTEST ITEMtosteal on the Internet. (besides credit card numbers, of course)John Smith puts his feet, turns on the satellite TV, and lets theInternet run his business silently.John Smith gets a sale on his online store. The order is for 300 books.John loves the way the Internet allows his business to pretty much operateon autopilot.He knows that the 3rd party vendor he uses to take all his credit card salestook careof it, so all he has to do is print an invoice and pack it up. Off he goeswith themerchandise to the post office, marveling at his first sale from his store.Joe Black gets a sale on his online store. The order is for a$3,500.00 laptop.He does not use a 3rd party vendor for his credit card processing. He justhas a store thatuses Secure Socket Layer, then it emails him with a link that he clicks onto take him tohis orders. Joe Black's process takes a lot more administrative work, but hefeels in controlof his business. He really wants to be aware of what goes on every minute.Joe, or whoever prints out the orders from the store, takes a long,leisurelylook at this order. He knows what he is looking for. He gives the order to aorders clerk.The orders clerk picks up the phone, dials the number on the order."Mr. Jones, hi, my name is Angela. I work here in the customer servicedepartment, and we areverifying your order from our online store. To protect your security couldyou tell us ifyou ordered items from our online store today, and if you did, could youpleaseprovide us with some verification of your order. We WANT TO PROTECT YOU.Could youplease give us the 800 number on the back of your credit card and yourbank's name?"Customer: "Uh, who are you trying to call? This is the roller skating rinkin Topeka, Kansas."Angela thinks that perhaps the person who ordered just mistyped the phonenumber.She gets out her list of merchant phone numbers and calls up Mastercard."Hello, My name is Angela, and my company is Laptops 4 U. We are a merchanton the Internet,and we need to somehow verify that a card number used on our online storewas not stolen."Mastercard happily gives her address of the cardholder and other informationthat tellsAngela that her company could have lost a laptop and possibly their merchantaccount whenthe credit number does not go through the system.......the transaction stops RIGHT THERE. Go no further.(this is not a totally untrue story...happened to us in a similar situation)John Smith gets the statement from his Merchant Account provider about amonth later.He has sold about 1,000 books this month. His books are a real hot item!Two days later, John Smith gets another letter from his merchant provider.John'smerchant provider, like many, automatically deposits or deducts credit cardtransactionsfrom his checking account. After John got the first statement, he gave mostof the profitsto his wife so that she could go down to the A&P superstore and buy somefood. She alsodecides they need a new living room couch. The money's spent.The 300 books that someone ordered, well - they were ordered on a stolencredit cardnumber.Did John or his automated online store merchant know this? How could they?The owner ofthe credit card did not know their number and expiration date had beenlifted from astore somewhere on the Net.John is out 300 books and $4,485.00 in revenue. He also receives athreatening notice thatif this happens again, he'll lose his merchant account.------------------------------------------Did you notice anything strange about the merchant account provider takingthe money awayfrom John? Mastercard did not eat any of the loss, and neither did John'smerchant accountprovider..notice that?The merchant eats ALL OF IT. John is now in debt to the merchant accountprovider, and somenimrod is off selling his books in some far away corner of the Internet. Article Tags: Online Store, Store From, Credit Card, Smith Gets Source: Free Articles from ArticlesFactory.com