US Bankcard Services Industry Blog

Tuesday, November 30, 2010

How to minimize fraudulent transactions?

As consumers and cardholders, we have heard many stories of identity theft and credit card fraud whether it be from the news or read on the internet. As society moves further away from cash to credit, these security issues are becoming a major concern. You could never be too careful when it comes to protecting your business from fraud. With the technology we have now, there are many ways for a person to pull a scam on you and your company. Here are some important tips to minimize such unethical behavior: 1. Train your employees on proper practices for accepting credit cards in your business. Get them in the habit of comparing and checking the signature. 2. Examine the card! There have been many cases of an expired card being presented for payment that gets a valid authorization from the processor. However, in the end the transaction is not paid to the merchant. Therefore, the merchant is responsible for examining the card and verifying the information present on the card. 3. Pay attention to the way your customers are behaving. · Customers who make major purchases without asking any questions. “Major purchases” are based on your judgment. You know what your typical customer is like; if the customer is purchasing an expensive item in your store without asking you the kinds of questions you would normally get, you may have a problem. · If a customer is being pushy, rushing, or distracting the cashier during the cash out process, they may be trying to throw them off guard and slip by a fake card or a card that does not belong to them. Make sure that you and your staff know to take the time going through the transaction process. · If a customer makes a purchase, leaves the store, and then returns shortly afterward for another larger purchase, this would be a good sign of a potential problem as well. Lesson to learn: Be aware of your surrounding and what is presented to you before you process any transactions. If something doesn’t seem right, you may kindly ask for another form of payment. Less risk is always better for the business.