Merchant Account Credit Card Processing - How to Avoid Fraud and Lower The Chargeback Rate?

Credit card fraud is a serious problem that results inmore watchful.
significant loss to credit card companies andChecking the ID of credit card holders
businesses that accept credit cards. Credit cardAsking for ID from the card holder is a simple and
processing companies use advanced technology thateffective action to check fraud. Most businesses do
ensures secure processing of transactions. They havenot follow this practice consistently. Fox example a
processes in place to detect fraudulent activities.busy bar may not ask customers for ID every time
Businesses also need to follow strict guidelines inthey make a purchase.
handling credit card payments.Verifying signatures
Thieves often get away with fraud because of theMany businesses do not even glance at the signature
casualness of staff at checkout counters. Someto confirm the identity of the credit or debit card
steps businesses can take to protect themselves andholder. Businesses must compare the signature at the
customers from fraud are:back of the card with that on the receipt. A
Verifying the genuineness of an unusual credit cardfraudster will be wary of a business that follows this
activitypractice consistently.
Credit or debit card processing companies keep trackBusinesses pay damages for negligence in credit
of the activity in an account to establish a pattern. Iftransactions
there is an unusual activity, such as a sudden increaseIn case of credit card theft or fraud, the customer is
in credit purchases volume, the processing companyusually exempted from paying the bill and the card
will detect it immediately and call the customer orissuer has to bear the cost. However, credit
business to check its authenticity. This helps inprocessing at a business is treated differently. If the
detecting fraud early before it could do muchcard processing company can prove that the
damage.business was negligent in handling the transaction, by
Verifying the address of the card holdernot checking the ID or signature, the business is held
Many point-of-sale (POS) terminals have an option toresponsible for the mishap. The business may have
verify the address on file. The option can be enabledto pay fraud-related damages to the credit card
or disabled. It is safer to keep this option on to havecompany.
an additional check.Common fraudsters rely on the negligence of
Training staff at checkout countersbusinesses to get away with their crime. Credit card
Most businesses do not train staff adequately forfraud is rampant, and the only way businesses can
handling credit transactions. A credit or debit cardprotect themselves is by following simple tips
transaction is oversimplified as just a swipe andmentioned above and staying extra vigilant.
punching in of keys. The staff should be trained onBefore you hire a vendor, compare multiple credit
the features of the POS terminals that can makecard processing rates quotes at a B2B Marketplace.
transactions more secure. They should also be trainedFor further information please read our credit cards
on practices such as verifying signatures, ID, etc.processing advice.
Making the staff aware of card fraud will make them