Table of Contents

1. Editor's Musings
2. Article: Internet Fraud © 2006 Scott Burke
3. Recommended
4. Internet Sites Reviewed
5. Freebies and Other Good Deals
6. Joke of the Week

1. Editor's Musings

Welcome to the Year of the Dog! My Asian friends tell me that the Year of the Dog is believed to be a good year... so here's to prosperity and success for us all.

2. Article: Internet Fraud

Taking transactions over the Internet can be profitable but it can also bankrupt a small business. Accepting online transactions means accepting additional responsibilities as a merchant. These responsibilities include knowing and understanding your risk exposure and your liabilities.

You are 100% liable for all losses sustained. And, if there is an excessive amount of fraud or unauthorized transactions through your merchant account, your fees and discount rate could be raised, your funds could be held, or your merchant account could be closed. Be aware that authorization codes only mean that the cardholder has funds available for that transaction and does not verify the sale.

When possible, also use CVV2 (Card Verification Value). Ask the customer for the CVV2 information on the back of the credit card. If that person cannot supply you with that information, that is a sign that you may not be dealing with the actual cardholder.

Be Aware of High Risk Countries

When receiving an order from an International country it is recommended that you obtain the card issuing bank information to verify the legitimacy of the person giving you the credit card. Indonesia, Nigeria and other areas of Africa, and Singapore are the highest risk areas for accepting credit card transactions as most fraud is generated through these areas.

Minimize Risk

To help minimize your risk exposure, take the time to learn about AVS (Address Verification System) if your merchant account is set up with this feature. If the address does not match, you may not want to ship any product without verifying through the card issuing bank.

Also be aware that AVS does not work with International addresses. Always check the AVS response codes.

Best Practices

Be alert for transactions with several of the following characteristics:

• * First time shoppers
• * Larger than normal orders
• * Orders consisting of several of the same items or orders composed of big ticket items
• * Orders shipped "rush" or overnight
• * Shipping to International addresses
• * Transactions on similar credit card numbers
• * Orders shipped to a single address but made on multiple cards
• * Multiple transactions on one card or multiple cards with a single billing address but multiple shipping addresses.

Ask the customer for the preprinted numbers above or below the first 4 embossed account numbers, name of the card issuing bank and for the customer service phone number on the back of the credit card. If they cannot provide this information, more than likely this is not the actual card holder.

Site Data Requirements

Card Associations have mandated that merchants, who store account holder data (account information, cardholder information, and transaction information) in an electronic commerce environment, keep this information in a secure manner. This is to ensure that merchants are adequately protected against hacker intrusions and account data compromises.

Hacker break-in's can have potentially dangerous consequences on merchants. There could be a disruption in your merchant service and loss of consumer confidence with your business.

• * Do not store CVV2 information.
• * Destroy all unnecessary data.
• * Use Network Security tools to protect website (firewalls).

3. Product Recommendation: *** FREE Rubber Stamp at iPrint.com!

4. Internet Sites -- reviewed by June Campbell

1. *** Businesses May Take a Big Hit***
What happens to business if the flu pandemic hits?

*** Owners Add Fun to the Business Model***
Women business owners approach business from a different perspecive, according to this writer.

*** Cell Phones Top List of Business Travelers Gripes
61% of us would prefer to see cell phone use banned on airplanes.

*** Life Coaching: The New Choice for Business Executives
The writer says New Year resolutions are out; life coaching is in.

5. Freebies and Good Deals

Did you know that subscribers to Bob Osgoodby's Free Ezine "Tip of the Day" get a Free Ad for their Business on his Web Page? Subscribe at: http://adv-marketing.com/business/subscribe2.htm Great Business and Computer Tips - Monday thru Friday Instructions to place your ad are in the Newsletter.

6. Joke of the Week: A Legal Matter

A driver swerved to avoid hitting a box that fell from a truck ahead of him. A police officer noticed the incident and opened the box to discover it contained tacks.

Nevertheless, the police officer issued the driver a ticket for reckless driving. The charge was tacks evasion

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