Preventing Chargebacks

In order to protect yourself against frivolous charge-backs, have your return policy pre-printed on the credit card sales draft and signed by the cardholder at the time of the original sale. The refund policy must be close to the cardholder's signature to be recognized by Visa or MasterCard.

6 tips for traveling with credit cards

In some ways, credit cards make traveling abroad easier than ever. With plastic in hand, you won't have to deal with pesky traveler's checks or carry wads of cash to exchange. If you want to track purchases, simply log in to check your online accounts from nearly anywhere on the globe.

But with ease of travel comes a number of reasons to be cautious, especially when traveling with credit cards. Here are six ways to prepare the plastic in your wallet for a trip abroad.

1. CALL AHEAD:

"Our primary tip is for our customers to contact us in advance of any travel outside of the United States," says Paul Hartwick, spokesman for JPMorgan Chase. If you don't, the company could put a hold on your card when you try to use it in a different place. When customers call the credit card company ahead of time, "we can make a notation on their account and they can continue to use their cards as they always do," he says.

As long as the card company knows where you're headed, it will allow internal transactions to be processed. It will also warn you if any unauthorized charges show up from a country that is not on your itinerary.

2. KNOW YOUR CREDIT CARD'S FEES:

Some credit cards charge a foreign transaction fee, which can run around 3 percent. This can add up quickly, especially when you factor in hotel costs, restaurants and other expenses you might be paying for in a different currency.

While you may expect to pay a foreign transaction fee for a purchase made in euros, be aware of buying items in countries that accept U.S. currency as payment. "In some cases, card issuers are assessing the fee for transactions conducted on foreign soil or with foreign entities, even if the transaction takes place in U.S. dollars," says Greg McBride, CFA, senior financial analyst at Bankrate.com.

So if your next trip takes you to the Caribbean, you could still be charged foreign transaction fees during your stay there, even if your purchases are made in dollars. To avoid these charges in places that accept dollars, consider taking a couple of extra trips to the ATM before leaving on vacation. Then pay with U.S. dollars for as many of your transactions as possible to save on credit card transaction fees, advises McBride.

3. CONSIDER ENCRYPTION:

You can carry credit card information and other important documents in digital form while you travel. Some USB flash drives let you encrypt data, thereby protecting your information from prying eyes. If you lose your credit card while on the road, simply decrypt the file on a computer. You'll be able to see a copy of your card and access important information.

4. WATCH OUT FOR PIN'S OR SMART CARDS:

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By Rachel Hartman • Bankrate.com

Why use an AVS (Address Verification Service)

Using AVS (address verification service) is a good fraud prevention measure for Card Not Present merchants. Address Verification Service.

Address Verification Service (AVS) is a risk management tool for merchant accounts accepting transactions when neither the card nor the cardholder are present, or when the card is present but its magnetic stripe cannot be read by a terminal at the point of sale. Provided by the major card associations, AVS helps reduce the risk of fraudulent transactions by verifying the cardholder's billing address on file at the card issuer. Merchants submit the AVS request to the specific credit card association for address comparison.