Information on Merchant Accounts,
Ecommerce and Credit Card Processing

February 11th, 2009 by Jamie Estep

Visa Alerts of Floral Credit Card Fraud

Filed in: Fraud, Industry News, Merchant Accounts | 2 comments

Visa issued another security alert today specifically for Floral Merchants. Given that Valentines Day is a few days off, this is important for many businesses out there. None of this is ground breaking news, but extra care should be taken by floral merchants when accepting payments over the phone, fax or online. If you aren’t, take some extra steps to prevent fraud, CVV2 may help in this case which cost nothing extra to process with. Also, be very wary of extremely large orders.

Typically fraudsters look for times when business are most vulnerable, and when business picks up a lot, oversight is often the result.

Illegitimate customers are placing orders for flowers using stolen credit card information. The orders are typically placed via fax, e-mail, and/or hearing-impaired relay calls. The perpetrator then requests that the florists wrap the flower arrangements in various amounts of cash and bill the difference to the credit card number(s) provided. These orders have been known to reach $4,000.00. A shipping address for the order is then provided to the merchant.

In some instances, the perpetrators have been known to hire an unsuspecting accomplice to pick up the flowers in person. This accomplice is then instructed to ship the flowers via UPS or the U.S. Postal Service.

When the true cardholder receives the floral charge on their monthly statement, they will initiate a chargeback, as the order was placed without their authorization. As a result, the merchant will become liable for the fraudulent sale.

2 Responses to “Visa Alerts of Floral Credit Card Fraud”

  1. seo February 21, 2009 at 8:22 am

    Someone i know used my credit card without my permission so now i have to file charges. Its only $25 bc i caught it the day after it happened but its the fact they did it. Will their punishment be less just because of the amount? Will they even put it on their record?

  2. Wenningstedt auf Sylt February 23, 2009 at 9:29 pm

    Very timely for this chaotic economy. Charlatans are doing everything just to earn dirty money. when will these people change? Lets help fight these people. Unity and alertness are only two of the best methods.