Protecting Your Business from Fraudulent Card Payments

We’ve seen a recent uptick in fraud-related payments in which a merchant is manually entering card details into a point-of-sale (POS) device. This is known as “Card Not Present” transactions and significantly increases your risk of completing fraudulent transactions and losses incurred from Chargebacks. With the advancements in chip technology, there is no legitimate reason for a transaction to be completed manually when the cardholder is present. To help protect your business, it’s important for you to be mindful of the risks associated with these transactions and understand how payments should be handled based on the type of transaction being completed.

Credit and debit card chip technology is the most secure payment to complete “Card Present” transactions, and thus is one of the most important and effective ways to help protect your business from card fraud. If your business requires processing transactions over the phone, you will need to select the correct transaction type on the POS device when you initiate the transaction.

To help mitigate the risk and protect your business of fraudulent card payments, ensure your staff is trained on how to handle each transaction type and consider these risks when accepting “Card Not Present” transactions.