If you still have doubts whether credit card fraud poses a serious hazard for business owners, all you need to do is take a look at the news. Reports of major credit card breaches are all too common these days, and literally millions of consumers, at one time or another, have had their payment card data “compromised” by thieves. Once criminals obtain another person’s credit card info, it’s a relatively simple matter to use this data to purchase commodities, either online or in person at a brick-and-mortar store.

The simple fact is that no business is immune to this problem. From large “big box” stores to sole proprietorships that cater only to neighborhood clientele, any commercial enterprise can be targeted by malicious actors who use stolen credit card data to obtain merchandise illegally. The good news, however, is that businesses can take some simple precautions to minimize their risk of being defrauded in this fashion. The infographic posted below explains what you can do to protect yourself.

Credit Card Fraud and Your Business: What You Need to Know

If you’re an online business or brick and mortar retailer, credit card fraud is unquestionably a concern. In fact, most credit card fraud occurs in the United States. In 2015, a Barclays research note specified that the U.S. is responsible for 47% of the world’s card fraud despite only accounting for 24% of total worldwide card volume Although these facts are alarming, here are some actions you can take to help prevent credit card fraud.

ONLINE BUSINESSES

Differing Billing and Shipping Addresses

Verify that the billing address and mailing address match, particularly if there are multiple orders being shipped.
While common, this type of purchase should grab your attention.

Orders with Multiple High-Priced Items

High ticket items with expedited shipping should be met with caution.
Cyber thieves often make multiple purchases with stolen credit cards and want them shipped immediately before the card is reported stolen.

IP Location and Credit Card Address Mismatch

IP addresses and credit card addresses should match.
Watch for IP addresses from countries your business doesn’t ship to.

Restrict Declined Transactions

Limit the number of times a credit card number can be entered incorrectly.
Thieves often use software to repeatedly enter numbers to make fraudulent purchases.

• Remember you will be charged for every time a card attempts an authorization.
• If the number of transactions are not restricted, your business could lose thousands, even if it is found to be fraud; if this happens, it could damage your business severely.
• We advise to set up a decline notification and restrict internationals orders if possible.

Upgrade Your Security Measures

From e-commerce purchases to every detail of your website, protect your business from hackers by updating computer operating systems, using encryption software, and limiting access to passwords and username information.

BRICK AND MORTAR BUSINESSES

Ask to See the Card

If the customer resists, it may be a red flag.
Have your employees touch the card and look it over for deviations.

Always Ask for Identification

Ask for a photo ID whenever a customer hands over a credit card.
If they cannot produce ID, no matter the excuse, do not go further with the transaction.

Verify Other Security Features

Account numbers should match on the front and back of the card.
The back of the card should have a hologram, magnetic strip, and signature.

FOR BOTH TYPES OF BUSINESSES

Collect the Card Verification Value (CVV)

The digits printed on the back of most credit cards are an important anti-fraud feature.
Criminals utilize many tricks to steal card numbers, but they often don’t have access to the CVV.

Sources:

http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php

http://smallbiztrends.com/2013/09/tips-prevent-online-credit-card-fraud.html

https://credit-card-processing-review.toptenreviews.com/credit-card-processing-how-businesses-can-protect-themselves-from-fraud.html

https://nerdwallet.com/blog/credit-cards/small-business-avoid-credit-card-fraud/

http://quickbooks.intuit.com/technology-and-security/5-ways-to-help-prevent-credit-card-fraud-in-your-online-business/

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