Credit Card Fraud Country Hot List

If you sell products on the web and take credit cards from international customers, be aware that as a merchant you will very likely absorb the entire cost for any credit card fraud that occurs.

It doesn’t matter if your credit card gateway or processor approves the charge. If the use of the card turns out to be fraudulent, the full amount of the charge will likely be withdrawn from your account. This ic called a chargeback. Plus, you take the loss for any products that you have shipped to the scammer’s address. To add further insult, many merchant accounts impose a penalty fee for the fraudulent charge–even if they or the payment gateway have approved the charge. The bottom line is that the merchant almost always takes the hit for the losses, and a merchant is expected to do their own research to weed out fraudulent orders.

Many new web merchants are not aware of this issue. There are several countries around the world where the rate of credit card fraud rate is so high that you will undoubtedly experience fraudulent charges if you do business with customers in these countries. It is ultimately up to you as a merchant to make the decision about selling and shipping products to these parts of the world.

You also need to be aware that in several countries there is no address verification system that credit card companies can use. In many cases the various credit card systems around the world are still not set up to communicate with each other.

Here are a list of countries where credit card fraud is extremely high. You can do business with customers in these countries if you wish to do so, but there will very likely be a large percentage of fraudulent orders found. We accumulated this list from various sources and it is by no means the complete list of all countries where you will likely find credit card fraud. Credit card fraud can exist in any country. This is merely a list of the countries that pose the highest risk to merchants.

Every merchant should be using IP addresses to identify the location of buyers. At a minimum, any orders originating from these countries should be further scrutinized.

Russia Federation

Turkey

Bulgaria

Egypt

Lithuania

Yugoslavia

Ukraine

Nigeria

Indonesia

Romania

Iran

Israel

Pakistan

Philippines

China


This list is in no particular order. Opinions vary widely as to which countries have the highest rate of risk for fraud. The level of risk very likely depends upon the type of business that you are focused on. The consumer electronics industry generally experiences the highest rate of credit card fraud.

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