While accepting online payments provides users with loads of convenience, they can also be the source of many disputes. No matter which industry you are in, implementing steps for business fraud protection is a must. Fortunately, many steps could help you guard your payments and protect your business from fraud.
Instead of utilizing just one method, it would be best to take advantage of numerous strategies, ensuring your business doesn’t encounter any fraudulent activity. Opportunistic credit and debit card hackers are always lurking around looking for their next prey, which is why every business, whether big or small, should consider implementing measures to prevent fraudulent transactions.
Security hacks and fraud can eat way at any organization’s balance sheets, no matter how much profit they generate. In addition, with the current pandemic going on these days, losing your payments because of fraud can cause a substantial financial dent in your business.
Are you a business owner who wants to secure their business’s online payment system? If the answer is yes, implementing the tips mentioned below could guard your payments, benefitting you greatly.
Protecting Your Business from Fraud – Best Practices
While there are plenty of ways to protect your business from fraudulent activities, the following tips are arguably the best and will yield tremendous results no matter which industry you are in.
Gather the Right Information
You’d be surprised to learn that some fraudulent activities only happen because of the limited information present in the checkout process. Collecting more data during the checkout could significantly decrease hacks by allowing you to determine whether the person/customer is authentic.
Of course, billing zip codes are unnecessary for processing card payments. However, making this information mandatory helps verify the card issuer’s payment, proving to be an excellent step for business fraud protection. You can always reject payments if the verification does not pass, as it could be a warning sign for fraud.
If you look at most high-quality checkout procedures, they ask for essential information like shipping address, postal code, full billing address, CVC number, customer email address, name etc -minimizing the chances of hacks and fraud.
Prioritize Effective Communication
Regular contact with customers is a great way to steer clear of payment-related disputes and guard your payments. Providing timely and easy to understand responses significantly reduces customer complaints and queries. Businesses should consider making their customer service info readily available, ensuring that customers don’t have trouble understanding the order process.
Detailed descriptions regarding their cancellation and refund policies are also helpful. By requiring users to accept your service terms, you can massively reduce online payment disputes and frauds.
Guard your payments- Look Out for Warning Signs
Businesses should always be on the lookout for potential warning signs when accepting credit card transactions. Several telltale signs indicate that the “customer” you are dealing with could be planning to rip you off or commit fraud. Let us look at some of these signs.
- They might claim their card is not working.
- Look for people who rush your shop when it’s about to close.
- They might pull their credit card from their pocket instead of a purse or wallet.
- Be wary of people who try to hand you their cell phone, affirming their bank will provide you with the approval code.
Of course, not everyone who does these things is trying to commit fraud, but you should remain alert and trust your instincts in situations like these.
Report Fraudulent Activities
While every business should consider taking as many precautions as possible, it doesn’t guarantee protection against fraud. There have been many cases where people implemented various measures but ultimately fell victim to credit card frauds. In case a situation like this arises, you shouldn’t waste time and report the fraudulent activity immediately.
Here are a few things you should consider doing whenever you suspect fraudulent activity:
- Give a call to the authorization center and inform them about a code ten authorization request.
- Do not confront the customer to ensure everyone remains safe.
- Steer clear from alarming the potential suspect and remain calm.
- The operator may notify the police if necessary while you or your employee waits on the phone.
Contacting the resources mentioned below could help you report a fraudulent transaction:
- Legal counsel
- Your bank
- The credit card processor
- The local authorities
Create a Business Fraud Prevention Procedure
One of the best ways to prevent credit card fraud is developing a procedure for your workers when they entertain card payments. Let us look at some helpful steps to create a robust fraud prevention procedure.
Take a close look at your customer’s identification with every purchase.
Check your customer’s credit card and make sure it is free from damage or tampering as cards like these are often stolen.
Take advantage of address verification services (AVS) provided by reputable payment processors to ensure that the cardholder is legitimate. Consider declining the card if the billing address does not match.
Review the receipt against the card. Taking a close look will help you find red flags, helping you prevent frauds.
Take Advantage of Fraud Prevention Features and Services
Preventing fraud these days is easier than ever as there are various reputable processors whose products and features help businesses secure their payment processes. Payline has a tremendous range of fraud prevention products that could help you guard your payments at all times.
Payline’s address verification feature, in particular, is a must-have for any business that aspires to improve its credit card payment security. Payline also offers its users with Verifi, a chargeback prevention tool, helping large and small companies steer clear from fraudsters. With protective tools like these, you can breathe a sigh of relief, knowing that your business will remain protected.