Fraud is a significant problem when it comes to credit and debit card processing, costing billions of dollars each year. Your business does not have to be a victim of fraud, however. You can take simple steps that can help you detect and deter fraud before it happens.
Be Aware: What to Look For
People will often tip off that they are about to commit fraud, though behavior is a difficult thing to judge. Your instincts are your best guide. Keep an eye out for large purchases without any regard for color, sizes, etc. Be wary of people who make large purchases without asking any questions. (Again, this is a guide. Many people do their research online and then buy locally, so they may have already asked and answered most of their questions.)
Watch out for purchases when you first open and when you are about to close. Especially be wary of people who try to distract or rush you during the sale.
Numbers that look off. Make sure the numbers on the card are spaced evenly and in a straight line. Counterfeiters often emboss the numbers one at a time, so they can look crooked.
Be sure the card number matches the account name.
Be wary of a damaged magnetic strip that forces you to enter the transaction manually. If you do enter transactions manually, check the last four digits on the receipt to ensure they match the card.
What to Do if You Are Suspicious
Every business should have a set of procedures if employees suspect fraud is happening. Hold on to the suspicious card, but only if you can do it safely. Call your authorization number and say, “I have a Code 10 authorization request.” Follow the operator’s instructions.
If the Stripe Won’t Swipe
Check your terminal to be sure it’s working properly. If the stripe isn’t working, try entering the number manually. Always match signatures and check the card’s security features. Often it’s as simple as an expired card. Do not accept an unsigned card!
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