Running a successful business is a daunting task. Dealing with the inconveniences and losses caused by credit card fraud makes it much more so. Credit card fraud can occur through many ways especially by acquiring the cardholder’s personal information. However, merchants incur losses through credit card fraud when they lose the value of their goods or services and chargeback fees from the financial institution.
The two types of fraud affecting merchants adversely are face-to-face credit card fraud and the internet, mail and telephone fraud. In addition to fraudsters who use cards acquired fraudulently to make purchases, there are legitimate cardholders who use their cards to pay for goods and services then initiate chargeback afterward leaving the merchant to dispute this. This article outlines the various measures that merchants can take to protect themselves from credit card fraud.
1. Train Your Staff to Detect Suspicious Behavior
A fraudster will rarely be at ease when using an unauthorized card. Suspicious customer behavior includes nervousness, haste, random selection of products that are expensive and signatures that don’t match. These behaviors can help your staff be more cautious and investigate further to find out if the customer is the genuine cardholder.
2. Verify Card Features to Detect Counterfeit Cards
Confirming features such as the hologram, valid date, account number, signature and embossing among others can go a long way in detecting whether the card is genuine or counterfeit. If you suspect it is counterfeit, contact the card company or a relevant authority immediately and keep the card if you can do so without endangering yourself.
3. Make Sure you are PCI Compliant
PCI compliance refers to the fulfillment of the PCI DSS- Payment Card Industry Data Security Standards’ requirements. The PCI DSS sets technical and operating standards for credit card data processing, transmission and storage. This keeps the data secure. Other additional processing procedures include using equipment designed for fraud detection and proper regular maintenance of your card reader. In case of a suspicious transaction, the Code 10 prompt enables you to inform the authorities without alerting the customer, in the US.
4. Use EMV Point of Sale (POS) Systems
Using EMV POS systems that are provided by reliable credit card processors is a great way to incorporate fraud prevention measures such as tokenization and encryption. These systems accept EMV payments which are effective against card-present fraud and in detecting counterfeit credit cards.
5. Data Breach Protection Techniques
Data breach techniques are imperative when operating an e-commerce business online. They offer a secure way of processing credit card transactions and protect you from online transaction fraud. There are wide ranges of techniques which may be basic or advanced. The former deals with the installation of firewalls and anti-viruses while the latter involves an advanced method of monitoring information before their delivery.