How To Avoid Fraud And Lower The Chargeback Rate,

Credit card fraud is a serious problem that results in significant loss to credit card companies and businesses that accept credit cards. Credit card processing companies use advanced technology that ensures secure processing of transactions. They have processes in place to detect fraudulent activities. Businesses also need to follow strict guidelines in handling credit card payments. Thieves often get away with fraud because of the casualness of staff at checkout counters. Credit or debit card processing companies keep track of the activity in an account to establish a pattern.

If there is an unusual activity, such as a sudden increase in credit purchases volume, the processing company will detect it immediately and call the customer or business to check its authenticity. This helps in detecting fraud early before it could do much damage. Many point-of-sale (POS) terminals have an option to verify the address on file.

The option can be enabled or disabled. It is safer to keep this option on to have an additional check. Most businesses do not train staff adequately for handling credit transactions. A credit or debit card transaction is oversimplified as just a swipe and punching in of keys. The staff should be trained on the features of the POS terminals that can make transactions more secure.

They should also be trained on practices such as verifying signatures, ID, etc. Making the staff aware of card fraud will make them more watchful. Asking for ID from the card holder is a simple and effective action to check fraud. Most businesses do not follow this practice consistently. Fox example a busy bar may not ask customers for ID every time they make a purchase.

Many businesses do not even glance at the signature to confirm the identity of the credit or debit card holder. Businesses must compare the signature at the back of the card with that on the receipt. A fraudster will be wary of a business that follows this practice consistently. In case of credit card theft or fraud, the customer is usually exempted from paying the bill and the card issuer has to bear the cost. However, credit processing at a business is treated differently.

If the card processing company can prove that the business was negligent in handling the transaction, by not checking the ID or signature, the business is held responsible for the mishap. The business may have to pay fraud-related damages to the credit card company. Common fraudsters rely on the negligence of businesses to get away with their crime.

Credit card fraud is rampant, and the only way businesses can protect themselves is by following simple tips mentioned above and staying extra vigilant. Before you hire a vendor, compare multiple credit card processing rates quotes at a B2B Marketplace. For further information please read our credit cards processing advice.

Alex Corral, Director of Technology at preCharge Risk Management Solutions. The preCharge system was designed for all users, from the novice Webmaster to the skilled software engineer. All merchants receive toll-free, 24/7 technical support every day of the year. 0.05 a transaction over 500 transactions a month, online merchants receive full access to the preCharge system. There is no setup fee, statement fee, or software fee. The preCharge system is all-inclusive and backed by a 100% money-back guarantee.

One of the most convenient methods of payment is using a credit card, but they do come with risks. When someone gets a hold of your credit card number and uses it you can lose money and it could cost you your entire limit. Even though theft is the most popular form of credit card and charge card fraud, there are other ways that fraud can happen. Misappropriation is another form of fraud. Using your credit card number without the card present is another popular credit card fraud.

Here are some examples of Misappropriation. Now that you know how someone might steal your credit card or the number you can be aware and use these guidelines to keep yourself protected. Use this knowledge to help protect yourself from credit card fraud. Also, you should always be very careful who you allow to borrow your card or use it for any reason whatsoever. This will keep you from having any surprises on your statements each month.

In the 1990s there were 10 issuers of creditcards. Today, we are down to 5. The business hasn't been growing lately, so the issuers of creditcards are trying to steal business from each other. Now they are buying out competitors, and that means less competition. That is bad news for customers. 2. Growth in Small Charges.

To grow the outstanding balances on creditcards, there is going to be more of a push to allow small charges. Why do you think so many people have creditcards in their wallets, creditcards in their drawers, creditcards next to their phones, creditcards in purses, and more creditcards coming in the mail, Issuers of creditcards are pushing to replace cash.