5 Tips to Protect Against Credit Card Fraud


If you are looking for tips that you can use to protect your business against credit card fraud, then you have come to the right place. In this article, we provide pointers that can help business owners safeguard their respective enterprises from the illegal and fraudulent schemes employed by unscrupulous individuals and organizations.


Three Tips for Businesses with Credit Card Merchant Account

1. Apply for a merchant account only from credible financial institutions. First and foremost, business owners are reminded to sign up for merchant accounts only with legitimate, accredited, and licensed firms. After all, this is the first protective wall that they can establish around their businesses to avoid the financial problems normally associated with fraud.

Aside from opening a merchant account only from reputable agencies, merchants should also resolve to apply for accounts that will suit the needs and financial capabilities of their businesses. In so doing, they can have the assurance that the credit card processing accounts they intend to obtain will definitely work to the advantage of their respective enterprises.

2. Know how to spot fraudulent orders.
To do this tip, business owners should be wary of the following:
• exceptionally large orders
• rush orders for large volume of high-priced items
• refusal of the customer to disclose a home or mobile phone number
• orders from foreign countries and territories, and
• orders which reveals mismatched information (for example, the address of the customer does not match the address on the credit card used).

3. Come up with an action plan in case you receive suspicious orders. Now, suppose you receive a suspicious order. Do you need to reject it right away? The answer to this question is no. Instead of rejecting a suspicious order placed by a customer, merchants are encouraged to come up with an action plan that they can follow should they decide to further validate the orders they receive. For instance, they can use the following pointers:
• Contact the customer and ask for complete name, address, ZIP code and phone number;
• Require the customer to enter the three-digit code at the back of his card;
• Use a fraud detection service that automatically blocks suspicious transactions based on the origin of the order and other conditions; and
• Look up the address and phone number of a local consumer using an online directory.


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