Credit Card Processing – How can you avoid fraud and lower chargeback rates?
Credit card fraud can cause serious damage to businesses that accept credit cards and credit card companies.
Advanced technology is used by credit and debit card processors to ensure secure transactions. They have procedures in place to detect fraud. Companies must also follow specific guidelines when handling myprepaidcenter card activation. Fraudsters are often able to get away with it because of the informality of checkout staff. These are some steps that businesses can take to protect their customers and themselves from credit card fraud:
Verifying the authenticity of unusual credit card transactions establish patterns, credit or debit card processing businesses keep track of activity in accounts. The processing company will immediately notify the customer or business if there is unusual activity such as an increase in credit purchases volume. This allows fraud to be detected before it can cause serious damage.
Verification of the address of the cardholder
Many terminals that sell point-of-sale (POS), have the option to verify the address stored on file. This option can either be disabled or enabled. To have an extra check, it is safer to leave this option on.
Train staff at the checkout counter
Many businesses don’t provide adequate training for staff to handle credit transactions. It is easy to think of a credit card or debit card transaction as a simple swipe and key input. Staff should be familiar with the features of POS terminals that make transactions safer. Staff should be taught how to verify signatures and ID. Staff will be more vigilant if they are made aware of card fraud.
Check of the personality of charge card holders
To prevent fraud, it is simple to ask for the ID of the cardholder. This practice is not followed by most businesses. Fox explains that a busy bar might not ask for customers’ ID when they make credit purchases.
Many businesses don’t even look at the signature to verify the identity of the cardholder. It is important for businesses to compare the signature on the back of the card and the one on the receipt. This practice should be followed consistently to avoid fraud.
Companies are liable for damages resulting from negligence in credit transactions
Credit theft and fraud usually result in the customer being exempted to pay the bill, while the credit card or debit card issuer is responsible for the payment. Credit processing by a business is different. A credit card or debit card processing company that can prove the business was negligent in handling a credit transaction by failing to verify the signature or ID of the customer, may be held responsible. The credit card company may be liable for fraud-related damages.
To get away from their crimes, common fraudsters depend on businesses’ negligence. Credit card fraud is rampant. Businesses can protect themselves by following the simple tips above and being extra vigilant.