Your small business is not just your passion, but your livelihood. That doesn’t matter to scammers, whose livelihood .
Credit card fraud is on the rise, and your business could be first in line to bear responsibility. The costs of fraud stack up quickly and your business could take a real hit after a few incidents. Understanding fraud from beginning to end can help you steer your business clear.
Many means to your end
Fraud can come from counterfeit cards, cards later reported lost or stolen or online and over the phone purchases where no physical card is needed. It all boils down to someone using the credit of a different person. Once the rightful owner of the card notices something suspicious, they can seek protection by freezing their card and asking for a chargeback.
While a chargeback can be a useful tool for the consumer, this system often means you’re the one out of luck. The bottom line for you is lost money from the sale and the chargeback fees, stock you may never see again and any wasted shipping costs.
Know how fraud happens, and you can avoid becoming a target. Establish a system for you and your employees, so that no one is caught off-guard.
- Be alert: Make sure you are on the lookout for suspicious behaviors and have a system in place. Check for ID signatures that match the card, obvious signs of card tampering and compare the info on the receipt back to the card and ID.
- Use the latest technology: Make sure your card readers are up to date. The payment industry has been taking steps in recent years to curb fraud. Chip-enabled readers hooked up to secure networks can be a great first line of defense in limiting fraud.
- Report fraud quickly: If you think fraud has been committed, start making calls. Contact the credit card company, your bank, local authorities, and legal counsel. Acting while the trail is still fresh means you may see your merchandise and money again.
Stay ahead of the curve, stay educated and have a plan in place. Being able to spot fraud can be the difference between business as usual and someone walking away with your hard-earned money.