Merchant services

5 Ways To Protect Your Business Against Credit Card Fraud


credit card fraudUnfortunately, in the case of credit card fraud, your business bears certain financial responsibilities and are similarly the victim, just as the cardholder whose information was used to make the fraudulent transaction. Protecting your business against credit card fraud is a necessary step that you must take in order to prevent costly chargebacks, and charges that arise from credit card fraud.

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When you set up a merchant account, you agree to pay certain credit card payment processing fees and charges on every transaction that you accept. It is important to understand that payments are not actually at your processor until you submit your daily batch at the end of the day, either manually or automatically. The reason this is important, is that it gives you time prior to closing your daily batch, to monitor your transactions and verify the validity of every payment that you accepted throughout the course of the day. Your credit card processor will provide you with the tools to monitor all transaction through an online portal or a dashboard that is set up for you.

Even with the tools provided to you by your credit card processor to try and mitigate credit card fraud, it is important to follow these 5 easy steps that you will be able to implement, to protect yourself and your business against costly credit card fraud.


1. Monitoring Transactions

This first step is a great way to get started in trying to reduce credit card fraud at your business. Install some cameras into your store, or business location that can easily view the front door, back part of the store and the designated check out area. If you do become the victim of credit card fraud, you will not only be able to check your transaction history online, but you will also be able to check your daily film, and see who the person was, if you are familiar with them, and even provide some information to the police is need be.


2. Check For Tampering

Make it a daily routine to check your payment processing equipment 1-3 times a day for tampering. Alot of credit card fraudster tend to tamper with machines prior to making a payment or purchase. If you, and your staff get into the practice of checking in the morning, during the early afternoon, and before close to make sure that the terminals are working correctly, nothing has been inserted into the card swipe area, or the card insert area, you will be protecting yourself preemptively against those trying to tamper with your payment processing equipment.


3.  Designated Check Out Area

Always ensure that your payment processing equipment is set up in a designated check out area, or payment area. Refrain from having the terminal, especially if it a wireless terminal, in a corner of your location, or in a dimly lit area that is not usually monitored by a staff member. Payment processing equipment should always be put back in the same designated area, and protected from the use of customers.


4. Ask the right questions

Training your staff to always ask the right questions to customers will protect your business against credit card fraud. It is important that all employees that will be processing transactions not be afraid to ask for a second piece of ID, match a signature, or refuse payment. If there is suspicion regarding whether the card matches the customer, and they are unwilling to provide a secondary piece of identification, or change payment method, it is in your right to refuse his payment and kindly ask that individual to leave. Although it may be tough, always ensure that the proper questions are being asked, and that being polite and asking someone to leave your location is within your rights.


5. Be Aware of large purchases

Although this may seem prejudicial, there is no harm in double checking the card holding when large purchases are being made at your place of business. This may be as simple as explaining there is a policy set in place by senior management for all purchases over a certain dollar amount required a secondary piece of ID, or simply double checking the name on the card, and monitoring the signature.

Take these 5 quick steps in preventing credit card fraud and begin to implement proper payment processes to protect yourself and your business. If you do come across any credit card fraudster, contact the police, and retrieve the card that is in question.


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Justin Proctor

As director of sales, I run the day-to-day sales department at BNA Smart Payment. I’m responsible for recruiting, training, coaching, and retaining top sales reps and leading a customer-first sales team. I lead an awesome team of revenue-generating machines (aka salespeople) on the front lines of the sales process, move the pipeline forward, build inbound sales playbooks, and implement processes to drive revenue.

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