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For B2B transactions, seller can request his bank to get in touch with the foreign buyer's bank abroad or its correspondent local bank to obtain relevant credit information on the buyer.

Check that the buyer is located at its stated address; verify with the buyer's named bank that the buyer has sufficient funds to pay the required amount.

Credit information companies may also be able to provide seller with information on his buyer.

What if the item paid for has not been received by customer or if it arrives damaged or if on inspection of the bill, the customers realize that they have not ordered the merchandise and want to return it?

Customers have the right to contest their credit card bill. Such customers can contact their card issuer to register a complaint, and will usually not pay the contested amount. When the complaint has been entered into the customer's record, the credit card company will enter into negotiations with the seller.

What if Stolen Cards have been used to pay for Goods?

There should be no recourse against the vendors. They should not be asked to return the amount received in payment either to the genuine card holder or to the credit card company. Card holders may be liable for some or the entire amount if they did not inform the credit card company of the theft or loss of the card within a reasonable period. In general, the credit card company will be held liable for fraudulent use of its cards, but it can make a claim for compensation from its insurance company.

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* Contributed by: -
Pankaj Kumar & Sameer S. Saigaonkar,
Batch of 2006-2008,
National Institute of Industrial Engineering, Mumbai.