Credit card and debit card fraud is one of the most annoying and one of the most damaging things that can occur in the life of a business.
But it is also a reality that one must be aware of before setting out to do business with customers. There are simply too many schemes, techniques and dangers out there, and in order to fight them, you have to be able to know what they look like ahead of time. You must also be aware that technology is changing all the time, and with it, the advancements that fraudulent persons make will continue to grow more successful to adapt to the challenges that you and other businesses can create for them. The key to being successful in the 21st Century is to be mindful of the ever changing environment without allowing your customer service and quality of business to slip. Here are the dangers that you most need to be mindful of. 1. The Displaced Credit Card You cannot always be sure that there are no alerts on the card you are about to process. Some persons are not aware they have lost a card or had it stolen until the first statement appears in their mailboxes. That's why it is important for your business to be vigilant against inappropriate use and credit card activity. Require the buyer to prove who he or she is, and you will prevent many of the fraudulent transactions before they ever occur. This is not only advantageous to the person you are protecting, but it is also beneficial to your business, because you know beyond a shadow of a doubt that the transactions you have run are final. 2. The Intentional ChargebackSome people may be looking for free merchandise without having to pay for it, or without having to pay full price for it. Purchases with credit cards generally protect the consumer from fraud, but they don't go as far as they should in helping businesses. As a result, some persons will take advantage by charging merchandise and reporting their card lost or stolen shortly thereafter. If you work hard to verify identity, then you don't have to fall into the trap of losing merchandise and missing out on payment. 3. The Money Back MethodSome customers may try to get cash refunds on merchandise bought with a lost or stolen credit card. When this happens, it is important that you be upfront with the customer and let them know you only do money back in the same manner for which it was paid. It is recommended that if you have a refund policy, you always require a receipt, so you can be sure that you are not being scammed.