The holiday season can be a wonderful time of year, but businesses still face risks like fraudulent charges, fraudulent returns, chargebacks and more. Protect your business with these five tips.
Check your security
Be proactive and make sure your security equipment is properly working. Test your alarm systems, locks, surveillance cameras, and any other security systems you have in place. For online businesses, make sure your antivirus software is up to date.
Use terminals that accept EMV cards
Also known as chip cards, EMV cards store their data on integrated circuits. This makes payments more secure and helps prevent fraudulent transactions and chargebacks. If you accept EMV cards, make sure you use the chip feature rather than swiping – even if the customer asks – as this could be a fraudulent card. Be sure to have updated payment processing equipment that is able to accept EMV cards.
Train your team
If you have employees, train them on how to use the payment processing equipment and refresh their memories on policies regarding check, credit, debit and gift card payments. Gift card returns are a common way to get away with fraud. Help ensure that transactions are completed properly and reduce your risk of fees.
Verifying the customer’s information during online transactions is an important step in avoiding chargebacks. Try using an Address Verification Service (AVS), which compares your customer’s address and zip code to the information on file with their bank. A Card Verification Value (CVV) match is also helpful, as it requires customers to enter their CVV – the 3-digit code on their card; this ensures the customer actually has the card in their possession.
Returns are an easy way that individuals can bring back items and have funds deposited onto their card. Be aware of returning items to the same card number that the transaction was ran on and checking the name of the cardholder which will print on the receipt. Gift card returns have a higher fraud rate due to their lack or traceability, be sure to check receipts, and customers info if anything has to do with prepaid debit or gift cards.