How Can I Avoid Fraud And Scams These Holidays?

There are a lot of different ways that credit card fraud can come about. Fortunately, your business has some options to try to avoid fraud throughout the holiday season. To do that, it’s important to understand the four main types of fraud, and what you can do to reduce the chances of having it take place. Here are four of the most common issues you could face when it comes to credit card fraud this season, but working with your merchant processing company can help you avoid them.

1. Stolen or Lost Cards

Lost or stolen cards belong to someone else, and if you allow them to be used you won’t have any recourse to get the money back. To avoid the risk, or at least reduce it as much as possible, always ask for an ID. If they don’t have ID that matches the name on the card, don’t allow the transaction to go through.

2. Fraud From Regular Customers

Even your regular customers could potentially try to engage in fraud. You really don’t know them that well, and they may not be completely who you think they are. Staff and family members could be part of this issue, as well, but the closer track you keep of your inventory the less chance you’ll have of this happening.

3. Odd Phone Calls or Email Orders

Big transactions that come from an East Coast buyer with a West Coast address for their credit card, for example, could send up red flags. It’s better to decline these orders until you can check them out more thoroughly. Fraudulent charges can be a serious problem and avoiding them, if possible, is the best option.

4. Chargebacks

Buyers with purchase remorse, or who have completely forgotten they bought something from you, may try to have the charge reversed by their credit card processing company. Keep good records, such as a signed invoice or sales receipt, and a scanned ID for larger transactions, so you can prove that the person bought the product. Buyer’s remorse isn’t a reason not to pay for something that was legitimately purchased.

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