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Preventing Credit Card Fraud (Part 2)

July, 11, 2011

[Note: This is the second part of this topic. Please read the previous post for context]

Merchants are the front-line defense against credit card fraud.  It may not be possible to totally prevent credit and debit card fraud, but setting up verification procedures can help cut down on potential losses.  In our last entry, we began the discussion with several loss-prevention measures.  Here are two more:   

Suspicious merchandise purchases. Train your staff to watch for dubious, questionable purchases that might indicate potential fraud:

• Someone buying numerous expensive items of the same kind (e.g., four flat-screen TVs). These kind of items can be sold quickly outside the store.
• Customers who insist on taking with them products that would normally be delivered, such as large kitchen appliances.
• During busy times or at the end of the business day.  Those attempting fraud often use the times when you or your clerks are rushed to avoid the standard identification procedures.
• Those who hurry in and pick up items very quickly, without apparent thought, should be viewed as suspicious.

Telephone/Online Orders: These are times when you cannot see your customer, but you can still implement policies which can help prevent fraud:

• Orders are not processed if the information is incomplete.
• Be cautious with customers who use free e-mail accounts (e.g., Yahoo, MSN).
• If the shipping address and the billing address are different, for rush/overnight orders or for unusually large orders, call and verify with the customer.
• Be alert of those who use multiple cards for items shipped to a single address.
• International orders. 

In addition to working with businesses to implement the best in preventative practices, Summit Merchant Solutions can also get you the latest equipment that meets (and exceeds) current industry security requirements. These new machines offer greater security (PCI Compliance) for both you and your customer.

If you have questions or would like more information, please let us know.  You can request more information on our contact page. 

What have you found effective to help in the serious problem of credit card fraud?  We welcome your thoughts, comments, insights or questions on the tips we’ve shared here.

 

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