joined:July 14, 2003
After having been a victim of credit card fraud a couple of times in the last two or three years, I now do name and address verifications on all credit card transactions. I'll do the automated ones that Visa supplies, but only for amounts under $200, and only if I the name and address supplied matches a search on one of the online phone directories.
For Mastercard there's no choice but to call the financial institution. Amex and Discover are great, each having a fully automated system that allows you to check name, address, city, zip and phone.
For amounts approaching or going over $1000 I call the credit card company and ask them to contact the card holder to verify that he or she authorizes the purchase. I want that verification in the customer's file just in case.
There are a lot of banks and credit card companies that refuse to do verifications, though, even if I offer to get the customer on the line (something I hate doing anyway). The banks don't care because they know it's the merchant who eats the cost of fraud.
I've really had it with those that won't do verifications, and I'm wondering if it's feasible to get online and brick and mortar merchants organized to lobby for a change in credit laws. I think the banks and credit card companies that don't do verifications should have to eat the costs of fraud, not the merchants who ask for verifications.
I realize the banks and credit card companies have their vast finances to influence members of congress, but there's strength in numbers, as the NRA and other groups have shown.
So, what do you think? Is it possible to get merchants together for such a cause?