Best Practices in Preventing Credit Card Fraud, Part 2


Best Practices in Preventing Credit Card Fraud, Part 2

In Part 1, we covered several ways of making sure you are using a reputable merchant services processor for credit and debit transactions.  Now let’s talk about how to safeguard your business from fraud once you begin processing electronic payment transactions.

 Your business is vulnerable during transactions from two sources: your employees and the consumer presenting the credit or debit card.

 Staff Fraud

Making sure that a consumer’s personal data is secure so employees cannot access this information is key. The majority of systems in use now do not show the entire credit card number but rather just the last four digits. This keeps the numbers from getting into the wrong hands.

Keep a close eye on returned transactions to be sure the canceled transaction has corresponding returned merchandise. Returns are a favorite method of internal fraud – the credit card gets the money put back on it but the goods are not returned.

Customer Fraud

You can’t judge a fraudulent customer by their appearance or demeanor. Larceny hits all social levels and even innocent looking elders can be thieves. Thieves are masters at finding your business’s vulnerabilities and exploiting them.

Card present transactions

Make sure your staff really pays attention when they process transactions and ask for additional identification if something seems off. Gut feelings are allowed.

·       Always check for a signature match to the card

·       Never accept unsigned credit or debit cards

·       Make sure the cardholder name matches the signer’s information

·       Make it a point to get to know regular customers by sight if not by name

·       Pay attention to the purchasing habits of your customers, particularly regulars

·       Emphasize the importance of checking information closely with your staff

·       Be on the lookout for distracted or nervous behavior

Card not present transactions (online, mail, phone)

·       Imprint the credit card whenever possible

·       Never hesitate to use the fraud prevention features of Address Verification Service (AVS) and Card Verification Code (CVC or CVV2)

·       For high monetary purchases, get a faxed signature or a copy of both sides of the credit card

·       Use the VERIFIED BY VISA program for extra security

·       Use delivery confirmation for shipments to protect against no delivery claims

·       Get authorization verification from the card issuer bank before delivering the purchase to the customer

For more information about preventing credit and debit card fraud and economical payment processing, contact Mike Krause at Sales Sense Payments, Inc., 585-704-6453, email: Please visit



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