Internet merchants or "etailers" know first-hand that fraud is the primary hazard of selling merchandise over the Internet. But Internet retailers have a safety net to help protect them from online credit card fraud.

Offered through an alliance between RC Knox and Co., the insurance subsidiary of People's Bank, Retail Decisions, a fraud prevention provider, and Creative Risk Management Solutions, a credit card fraud insurance specialist, the eTailer Fraud Solution Insurance Policy (eFSIP) is tailored to the insurance needs of Internet merchants.

The eTailer Fraud Solution Insurance Policy integrates fraud detection technology with insurance and risk management, using fraud detection software to provide Internet merchants with the ability to monitor online transactions, spot fraudulent transactions in real time and take steps to minimize losses.

The policy insures etailers for losses sustained by accepting credit card sales from a person or persons other than the authorized cardholder, such as when the credit card is lost, stolen or counterfeit. This includes using the credit card number, with the intent to deceive, without the authority of the cardholder.

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The eFSIP works in conjunction with software from Retail Decisions that will allow businesses to reduce their risk of being ripped off.

The program covers several of the most common losses from credit card theft, such as lost or stolen credit cards, identity fraud where the thief assumes the identity of a card-holder, and post purchase shipping changes, where the thief gains access to the customer data and changes the "ship to" address to an alternate site, where they can receive the goods.