If you're an online shopper and are afraid of credit card fraud spare a thought for those at the other side, the online vendors. The large majority of shoppers who lose money to fraud are reimbursed by their credit card issuer. On the other hand about 75% of vendors who suffer at the hands of fraudsters do not. So, what steps can the online vendors take to reduce this extremely damaging effect on their business? Below I have outlined 10 things to stick to if you are in the business of selling online:

1. Do not send goods to PO Box addresses. The owner of the PO Box could be located anywhere

2. Also be wary of shipping abroad as it's harder to make claims. Countries such as Indonesia and Nigeria merit extra precaution.

3. Most fraudulent transactions give a free email address such as hotmail or yahoo so insist that the buyer provides a paid email address.

4. Only process the order after speaking to the buyer over the phone.

5. Verify the mailing address to ensure it matches the billing address. Most merchant accounts offer a service for doing this.

6. Have various anti-fraud warning signs and messages on the front of your web site. Like a car alarm sticker, these should hopefully scare some of the criminals away.

7. Consider taking out insurance to protect your business from credit card fraud.

8. Although many customers may be irked, ask them for a photocopy of the credit card showing signature and relevant data.

9. For obvious reasons, beware of a customer who seems to be willing to pay over the odds for the good or is unconcerned by shipping fees.

10. Record the IP address of the customer. Refuse the order if you suspect they are browsing through an anonymous proxy service or at least phone the customer to find out why.

Credit cards were designed at a time when all transactions were done physically between two human beings. As a result, thieves have found it relatively easy to use stolen details online without the same checks being in place in a physical environment. Unfortunately, the seller of the goods and services is 100% liable for fraudulent transactions. By following the measures I have outlined above they can go some way to reducing the effect on them.