Credit Card Fraud Can Destroy Your Business and Bankrupt You
Accepting credit cards can help you grow your business exponentially. It can open your doors to a larger group of customers (those that only use credit or debit to make purchases). However, growth comes with additional responsibility. When you choose to accept credit cards, you become susceptible to hackers and credit card theft and fraud.
As a business owner, you need to have policies and procedures in place to protect your company from credit card fraud and identity theft. You need to protect your assets and your customers. Credit card fraud and identity theft are extremely common. However, if you are not on top of the problem your business could loose everything.
What Is Credit Card Fraud?
Credit card fraud occurs when customers use someone else’s credit card to make a purchase at your establishment. The person could have stolen the credit card information through identity theft online. However, they could have physically stolen the card from a stranger, parent, grandparent, friend, or other person they know and whose cards they can access.
When a person uses a credit card they received illegally, you risk owing the original owner a refund and owing fines for allowing the purchase to proceed.
How Does Identity Theft Contribute to Credit Card Fraud?
Credit card fraud can occur as a direct result of identity theft. Hackers can steal a person’s credit card information from your point of sale system or your online credit card system. Identity theft is a main contributor to credit card theft. It allows thieves to obtain a client’s credit card information and the necessary information to verify the credit card.
How Can You Spot Credit Card Fraud?
Credit card fraud may be easier to notice when it occurs in your brick and mortar store front. Many times fraudsters have not signed the back of the credit card or tries to make a purchase in which they do not need to sign for.
Body language is another way to notice a fraudster. Many people attempting to commit credit card fraud display signs through their body language. They may avoid eye contact. They may shift their weight as they wait for the transaction to be approved. They may keep their head down or even wear a hat or hood to help cover their face.
They are trying to avoid any way to get recognized so a store owner or sale associate cannot identity the fraudster. They actively try to avoid cameras and other opportunities to get identified. If asked a question, they may make get uncomfortable or cancel the transaction to get out of the store as quickly as possible.
What Can You Do to Prevent Credit Card Fraud and Protect Your Company and Its Customers?
You should have a set of policies and procedures in place to deter credit card fraud. First, your employees should know the signs of someone trying to commit credit card fraud. You can hold fraud training for your employees. Companies design courses to help you notice and prevent credit card fraud. Ensure your employees attend this training and complete any assessments related to the training.
You should have procedures in place at your point of sales locations. Make sure your employees ask to see photo IDs if the back of a credit card is not signed. They can also ask for IDs if the signature on the card does not match the signature at the time of sale. Your employees can also ask for other identifying information, such as a zip code for the credit card, to provide an additional security measure. Your POS system can include an additional request that customers enter a zip code to complete a transaction or the cashier can request the information before they complete the sale.
Finally, make sure you secure all credit card and personal information of customers. Whether you operate an online business, a brick and mortar location, or both, you should have security measures in place to prevent identity theft and credit card theft from your systems.
Use a Credit Card Processing Company That Cares As Much About Credit Safety As You Do
When setting up your credit card processing systems, you need to work with a company that understands the repercussions of credit card fraud and works to ensure you and your customers are safe from it. The experts at Tanker Consulting Services care about your customer’s safety when using credit cards. They care about your business’s safety and security. Call us at 609.922.0201 for a free review of your credit card processing systems.