Protect Your Merchant Account from Unnecessary Fraud Risks
Conducting business online has become increasingly prone to different risks. Without the ability to match the identity of the customer with the card in question, identifying legitimate purchases can be difficult. There are three main forms of fraud that can affect your business. Knowing the risks and how they work can help merchants better protect their businesses.
Credit Card Fraud
Each credit card scam is different. Credit card scams use a different method for each transaction, but the risk is higher due to more online shoppers. Because it’s not a card-present purchase, it’s impossible to tell if the person entering the card information is the actual cardholder or if the card is even valid. Credit card fraud isn’t entirely preventable for businesses, especially those who do business online. However, there are procedures that can be implemented to significantly reduce the risk.
Buyer Identity Fraud
In the case of buyer identity fraud, the customer uses a stolen credit card, or one created with a stolen identity. By the time any misconduct is detected, the customer has the product in their possession and the merchant doesn’t have a leg to stand on. The real cardholder will eventually find the fraudulent charge and dispute it. This causes the merchant to lose their product as well as their payment. Certain merchant account providers can hold the merchant responsible for the chargeback, which can further hurt the merchant’s business.
Friendly Fraud
When a merchant has been the victim of friendly fraud, the customer is actually the cardholder. The cardholder authorizes the payment, and reverses it once the product or service is received. This type of risk is the hardest to prevent against, as the purchase itself is legitimate. Cardholders have more protection especially with online purchases, as they can submit a chargeback request to avoid paying for the product or service in question.
TOTAL-APPS Can Help Prevent and Minimize Risk
With a TOTAL-APPS merchant account, businesses can rest easy knowing that solutions have been implemented to reduce risks. Our team of dedicated account specialists develop solutions based on each merchant’s requirements to save time and maximize profits.
Contact TOTAL-APPS today to see how we can protect your business against fraud.