The merchant would do well to check the history of successful transactions against the current one. If the same buyer has a good track record in the past, chances are the current transaction will be a genuine one too. Beware of Hotmail and Yahoo like addresses, where it is impossible to trace the buyer. In case of a first time customer, a manual check is often performed to reduce fraud. In addition to the above good practices, merchants can use technology to help reduce the incidence of credit card fraud.
Smart software is now available which use neural network technology to raise the alarm signs.
By matching the user's buying habits to the current transaction, the software tries to determine if it correlates to the buying pattern. In case an aberration is detected, the system flags the transaction and stops it from going through. If he now places an order for Rs 650 worth of business magazines this month, the system will let it go through automatically because it matches his previous buying pattern, give or take a pre-set allowance. The merchant will now take follow-up action by activating the call center to contact Mathur to ensure that he actually made the purchase. Copyright 2000 Times Internet Limited.