Safety net for online merchants
One of the biggest risks for small businesses trading online is that they ultimately bear the risk for fraudulent credit card transactions, on top of being charged a fee by the credit institution and losing the actual transaction value.
A insurance policy is now available to cover what are termed “Cardholder Not Present” deals, that is, unsigned credit card transactions, usually over the Internet or telephone and mail order sales. Underwritten by Lloyd's of London, it covers most of the major credit cards worldwide. The major focus of this policy is deals taking place over the Internet, where “fraud is so serious, none of the credit card companies will talk about it”, according to Phil Dryer of Interactive Insurance Brokers.