By Martha Pierson

Special to the Financial Independence Hub

We all want to do our best to provide our customers with the utmost convenience. Isn’t this the whole point of eCommerce, POS financing, and other recent developments in sales?

Unfortunately, with these conveniences also come increased risk. In fact, this article is going to discuss one of the dangers brought about by technology and its added convenience. That is credit card fraud.

Recent statistics point out that 47% of Americans experienced some form of financial identity theft in 2020. More importantly, credit card fraud, especially those related to new accounts, was reported as the second-worst reported following scams related to government benefits.

It is, indeed, very troubling. Fortunately, there are ways to prevent and minimize such malicious attacks. Here are six tips that both business owners and lenders (such as POS finance providers) can put into action:

Tip #1: Invest in Technology

There are numerous technologies that can help minimize credit card fraud. We simply need to take advantage of them.

For instance, declining cards without an EMV chip is a good first step. Not only does EMV provide another level of encryption, but chipped cards also generate unique codes after every transaction. These features make it impossibly difficult for thieves to create counterfeits.

You can also invest in incorporating a fraud prevention system into your eCommerce website. These platforms are easy to integrate and provide real-time protection for every transaction. Most of these programs can help you screen and authenticate customers, prevent fraud, and even identify vulnerable accounts.

You might also want to look into any advanced payment security feature that your eCommerce platform offers as an add-on.

Tip #2: Beware of Red Flags

Speaking of identifying vulnerable accounts, the next best step to prevent credit card fraud is to simply be aware of the red flags. For example, a person reaching for a credit card from his pocket rather than from his wallet is certainly suspicious. The same can be said for an online customer with multiple failed attempts to purchase due to incorrect information.

Of course, we’re not saying that these red flags automatically point out that one is committing fraud for sure. For all we know, that online customer simply had his caps lock on the whole time. Or maybe the previous customer just shoved his credit card into his pocket for no particular reason.

In the end, the skill to discern fraud can simply be achieved over time through the practice of vigilance and experience.

Tip #3: Increase the Quality of Employee Training

So you now have an idea on how to catch credit card fraud. The question is, are your employees equally equipped as well? Unless you manage every aspect of your business on your own, it is imperative for any business owner to make credit card fraud a part of their training.

We also recommend developing a clear procedure that your employees can follow. Here’s an example for in-person transactions.

• Check the customer’s ID for every credit card transaction.
• Make sure that the credit card doesn’t look tampered with in any way.
• Use an Address Verification Service to confirm the cardholder’s billing address.
• Finally, compare the receipt with the actual card. Check for any errors and inaccuracies. Continue Reading…