How To Better Protect Your Business Against Fraud

How To Better Protect Your Business Against Fraud
  • Opening Intro -

    There has been a rise in credit card-based fraud in the world of business which can affect both businesses and consumers alike.


While there are many legal protections in place to help consumers after fraud takes place, companies have fewer options after the sale has been completed. This means that knowing how to be diligent in preventing fraud should be a big part of your employee training and daily business practices.

Card-Not-Present Fraud

This type of fraud usually takes place during online or over the phone transactions where the customer is not handing the company a physical card to swipe.

Consumers can have their card numbers and other information taken through data breaches and not even know until their next bank statement.

As a business, it is important to make sure that you have partnered with companies which use security measures when verifying payment as well as those with high security on their own data to prevent CNP fraud and data breaches.

The three-digit security number on the back of credit and debit cards is a way that customers can feel more secure paying online, as well as help your company be confident in the transaction.

Card-Present Fraud

When the credit or debit card is present during the transaction, such as at brick-and-mortar stores, you will need to spot signs that it is being used correctly such as matching a photo ID to the name on the card, comparing signatures or using verification software that asks for the three digit security number.

It is a good idea to understand the protocol that your transaction processor uses for cards and to train your employees in it.

Chargeback Fraud

Chargebacks occur when a customer refutes a charge with their card issuer for various reasons and the charge is reversed. This can cost your business more than just the return of the sale amount, however, as most banks add fees to the chargeback.

Companies like Ethoca can help you reduce chargebacks by reducing other types of card fraud and assisting in your defense of the transactions. You can also protect yourself by getting contracts in writing or using a secure identity verification before processing the payment, by making sure the customer knows how the charge will appear on the bank statement and by quickly resolving customer service disputes.

other valuable tips:

Protecting your business against fraud in the right ways can mean the difference between growing from a start-up to a major corporation and closing doors in the first couple of years. This means learning the ways to spot fraudulent transactions both in-person and over the phone or internet as well as partnering with companies with good security, procedures and reputations.

Image Credit: protect business against fraud by Pixabay

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