Credit Card Processing Fraud: How Business Owners Can Protect Themselves

July 18, 2016/0/0

Accepting major credit cards provides your customers with more convenient options to pay for purchases. What it also does is create a potential issue with the unauthorized used of credit cards by unscrupulous individuals. Along with triggering financial issues for the actual cardholders, it also can wreak havoc with your revenue stream. Here are some of the ways that you can protect your customers and yourself from being victims of credit card processing fraud.

Ask for Identification

You are within your rights to ask to see some type of picture identification before processing a credit card transaction. The goal is to determine if the name of the ID matches the one on the card. If the credit card holder has signed the back of the credit card, compare that signature with the one on the picture ID. If they are a match, then you are good to go.

Keep in mind that not all credit card holders sign the backs of their cards. Instead, they may write a phrase like “ask for ID” instead. When you see this, ask to see identification even if you have waited on that person before. The customer won’t get upset. In fact, the individual is likely to be pleased you too the time to check the back of the credit card and respond accordingly.

Go for the Latest in Hardware

How long have you used the same equipment to process credit card payments? Now would be a good time to update to the latest generation. The equipment of today includes EMV technology that makes it easier to scan the chips embedded in new cards. With a name that is derived from three major credit card types (Europay, MasterCard, and Visa), the technology helps to further reduce the incidence of unauthorized use of cards. You will pay a little more for the equipment, but it will easily save you a lot of money in terms of preventing charge-backs due to illegal card use.

How about Card Transactions Other Than Those at the Register?

Perhaps you operate a business than includes self-checkout options like at a gas pump or a self-help kiosk at a grocery store. One way to help reduce the incidence of card fraud is to require the user to key in some other vital piece of information associated with the card. One of the more effective approaches is to require the user to enter the ZIP codes associated with the card. The transaction will only continue if the code is correct.

Consider how this works. You own a convenience store and offer gasoline. A customer pulls up to a pump and slides a credit card into the slot. Before the customer can begin to fill the tank, it’s necessary to use the keypad provided to enter the ZIP code associated with the card. It’s only after the user enters the correct code that it’s possible to select the grade of gasoline, lift the nozzle, and begin to fill the tank. Some systems may allow the user up to three tries before shutting down the transaction altogether. In any event, you are not left holding the bag with no money and less fuel to sell.

Choosing to take steps against credit card processing fraud is good business. Customers will appreciate your efforts to protect them. You can also depend on those daily receipts being the real deal and not worry so much about charge-backs. Look into these ideas to day and implement them in your operation. You won’t be sorry.