Accepting credit cards as payment for your business’s goods or services comes with risks and rewards.
Here are some tips to help minimize the risks of credit card fraud so the rewards can make your more successful.
Ask for ID at the time of an in-person purchase and verify that the name and photo on the ID match name on the credit card and the looks of the person making the purchase.
Is there a signature bar on the back of the card and is it signed?
Is there a magnetic strip on the back?
If you take over-the-phone or online orders, make sure to get the right information. This includes the card number, the cardholder’s name, billing address, phone number, the three-number CID code on the back, and the card’s expiration date.
Use an address verification system to help see if the information matches what the cardholder gave you.
Be aware of discrepancies that could spell trouble. Is the order suspiciously large? Are a number of expensive items being purchased at once? Does the order come from a country known for a lot of fraud? Is the same card being used for multiple purchases on the same day? Is the same shipping address being used for multiple cards?
Upgrade your payment system to chip readers, which were designed to reduce fraud during in-person purchases. Besides having more safeguards built into the process, businesses using chip readers aren’t liable if credit card fraud does occur.
For businesses, learning what to look for to minimize the risk of card fraud can lead to rewards that can include increased profits and a safer purchasing experience for customers.