Accepting credit cards allow a business’s customers to make their purchases conveniently without having to carry a large amount of cash with them or write too many checks. Credit cards can also be the source of pain for a business in the current climate of increasing identity theft. Below are four tips that will help business owners reduce the numbers of fraudulent credit cards they receive.
Know the Merchant Account Rules
A merchant account provider has guidelines as to what their clients are supposed to do in the event that they believe they have been given a stolen card. To protect themselves, merchants are advised to follow these guidelines to the letter to keep from being caught up in the deception. The amount of money these merchants are charged in fees by their merchant account providers can depend on how often charge backs are required. Keeping these charge backs to a minimum keep their fees lower and the merchant doesn’t have to pass the expense onto their customers.
Call the Bank that Issued the Card
This option may be time-consuming, but it will be a highly effective way to determine that a card is being used legitimately. When merchants call the bank, they may ask the bank to call the customer to ensure that the cardholder authorizes the charge.
Keep a List of Previously Fraudulent Charges
To keep people who have already defrauded the business from re-offending, merchants can keep a list of these people on their computers. Important information to include in this list is the fraud’s name, address, phone number and credit card numbers. If the business is online, web information will also be needed such as the fraud’s computer IP address and email address. When these people try to purchase merchandise again using their fraudulent credit cards, the computer will immediately alert the merchant making it possible to stop the transaction.
