Educating Your Business on Credit Card Scams

Credit card scams are occurrences that every business experiences at some time or another. A credit card scam is another name for credit card fraud, which is a dishonest activity in which a person partakes to obtain goods that do not belong to him or her. A business can cut down the occurrences of credit card scams if members keep themselves educated on the latest tactics. The following information contains examples of the latest scams in which people partake to misuse credit cards.

Illegitimate Credit Card Chargebacks

Chargebacks are the most common type of credit card fraud that people perform. Chargebacks occur during credit card processing. The person who places the order contacts the card company and initiates a retraction of the credit card charge. Many of the chargebacks are not legitimate. For example, a consumer may claim that he or she never received an item in the mail. The person may state that the item is broken or damaged in some way. The statements may not be true, but the credit card company will still side with the cardholder first and place a hold on the money. Additionally, the merchant processor will charge additional merchant account fees for the chargeback. A business can protect itself from such charges by using modern technology and merchant card services that go easy on chargeback penalties. Businesses must implement high security, as well.

Unauthorized Usage

Another way that people perform credit card fraud is by stealing physical credit cards and credit card numbers. When the true credit card holder discovers that his or her card is missing, that person usually contacts the credit card company, and the credit card company retracts the payment.  

Protecting the Company From Credit Card Scam

Credit card scam attempts are unavoidable. However, a business owner can protect its business by implementing smart merchant services. The business will want to choose a merchant service provider that offers the latest technology to combat credit card scams and fraud. For example his business could obtain merchant services from a provider that offers an integrated shopping cart with high security features.

Two types of technology that the provider may offer are online receipts and security code input. Security code input forces the buyer to enter the three digits that are on the back of the card. Lucrazon can provide a business with high-security ecommerce tools that exercise full credit card compliance as well as convenience. Businesses can use Lucrazon’s suite of tools to prevent occurrences of credit card fraud as well as unnecessary merchant charges. The services have a 100 percent satisfaction guarantee on them, and interested parties can speak with a specialist today.

 

Source

https://www.youtube.com/user/Lucrazon

http://www.statisticbrain.com/credit-card-fraud-statistics/



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