The sharp increase of online ordering, delivery services, and other internet commerce transactions is keeping some businesses afloat through the COVID-19 pandemic. BBB warns that despite the credit card companies shifting to chip-enabled cards to reduce instances of fraud, scammers still find ways to steal shoppers’ information. This presents a big issue for any business that processes the stolen card through their credit card payment system. There are a few ways to protect your small business from costly chargebacks.
One of the best ways to start is to review the agreement you signed with the credit card merchant and ask for clarification on their policy regarding fraudulent purchases; it’s important to know whether that is something they cover or if you are wholly responsible. Additionally, determine whether they require a customer to input a PIN or zip code to verify their identity at the point of purchase.
Take the time to review your own internal policies with employees and establish a set of steps to identify potential fraud. There are several red flags to watch for to help spot a potential scam:
- Keep a close eye for unusually large orders, placed through the internet without any contact from the customer
- Listen for a demand or repeated request for an urgent or rush order for large quantities of high-priced items to be shipped to different addresses or overseas
- Look for transactions…
