Protect Your Business Against Fraudulent Credit Card Payments

An issue about accepting credit card payments is the risk of fraud. While the risk of fraudulent transactions cannot be completely eliminated, there are some steps that merchants can do to protect their business and their customers.

In this article, let us discuss tips on how to prevent fraud for business owners who accept credit card payments. First, let’s discuss security measures for transactions when the cardholder is present:

Ask for additional Identification. Request the customer to provide another proof of identification especially for big purchases. Check the name and see to it that the bearer of the card resembles the person on the Identification presented.

Make sure that the signature on the back of the credit card matches with the customer’s signature on the receipt, as well as on the ID presented.

Authenticate by phone. If the credit card won’t swipe, it can be an indication that the card is fake. Take the extra time to authenticate the credit card by calling the bank’s authorization hotline.

What about for transactions where the cardholder is not present? Consider the following security measures:

Request for a security code. The security code is usually the last three digits found at the back of the credit card. For American Express credit cards, this will be the last four numbers on the front of the card.

Double-check customer information. Take the extra time to check the name and the shipping address provided by the customer who placed the order and make sure that it matches with the cardholder’s information.

Use a secured payment gateway system. A payment gateway must use SSL 128-bit data encryption technology to protect all information that passes through the system.

Use a secured shopping cart software. Make sure that your chosen shopping cart software also uses reliable online protection against fraud and ID theft.

Watch out for overseas shipment. If a customer places an exceptionally large bulk of order and provides a shipping address outside the US, you should do all the necessary steps to verify the credibility of the customer. Some merchants strictly refuse international shipments to reduce the risk of fraud.

Avoid transactions where multiple credit cards are used. Identity thieves may try to pay for a big purchase using several credit cards which have been stolen from different accounts. If you are a seller, it would be best to avoid such transactions.

Do you have other tips to add to the list? Please feel free to share your views by leaving a comment.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

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