Five tips for avoiding credit card fraud

A fraudulent transaction can cost a business the sale as well as the stock or services exchanged. Here are five steps to help you avoid credit card fraud.

  1. Inspect the card
  2. When a customer presents a credit card in-store, ensure it displays a recognised card-issuer's logo, the cardholder's name and matching signature, a card number and expiry date and the three-digit CVC2/CVV2 number next to the signature. If the card doesn't look genuine, ask for another form of payment. If the name and salutation on the card seem unusual, ask for photo identification. Always swipe/insert the card or take an impression, and never allow the customer to enter the card number manually.

  3. Research the customer
  4. Card-not-present transactions - where neither the card nor the cardholder is present - expose businesses to a greater risk of fraud than in-person transactions. Obtain as much information from the customer as possible, including a contact number and address, and a photocopy of the front and back of the card if feasible. You can then gauge the customer's trustworthiness by calling the customer to confirm order details.

  5. Ensure a secure delivery
  6. Card-not-present fraud often involves unusual delivery requests. Always conduct deliveries with a courier your business has used before. Instruct the courier to deliver the package to a person within the building listed and ask for a signature on receipt.

  7. Take care with refunds
  8. Never refund a transaction to a card other than the one used in the first instance. Likewise, refuse customers who request a refund to be sent online, or by money order or international money transfer.

  9. Do not process payments for third parties
  10. Refuse businesses or individuals who ask you to process transactions on their behalf. Your business will be liable for all chargebacks on such transactions, which makes third-party payment a way for others to implicate your business in their fraud.

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