With the costs associated with running a business steadily increasing, a business owner must take every step possible to avoid further losses. Point of sale fraud is something that occurs within many businesses, both physical and retail locations. However, if the company uses intelligent practices, it can avoid some of this activity. The following are tips on avoiding point of sale fraud:
Verify the Identification of Every Card Customer
A common mistake that businesses make when they take credit card payments is not verifying the cardholder. This leaves the company wide open for losing money on point of sale fraud. Without using strict verification tactics, a person can use another party’s credit card and remove the merchandise from the store. When the original credit card holder files a report with the credit card company for fraud, the businesses loses the product and the money.
Using an Advanced Credit Card Processing System
To protect the business from point of sale fraud, the owner can obtain a merchant account. Merchant accounts provide a way for a businesses to accept safe credit card payments. A business owner can purchase innovative credit card machines for credit card processing. Such machines may contain the technology to verify the user’s account. The system will not only verify the account holder, but also it will read the card to see if the user has the money in the account.
Only Accept Online Orders With Complete Information
Some consumers order their products online. People who commit point of sale fraud sometimes are able to do it by not completing the order form or checkout information correctly. To prevent this from happening, the business can incorporate merchant account processing services to match the customer’s name with the name on the card. If the names do not match, the system may reject the sale.
Restrict Remote Access on Devices
Point of sale theft through illegal bugging systems are becoming a major problem with companies that accept credit cards. The offenders are able to read and duplicate card information by installing bugs into the point of sale systems. By using secure cables and inspecting the terminals on a daily basis, the business owner can avoid such fraudulent activity.
Business owners should also maintain records of refunds and fraud transactions that they lose money on. Blocking certain buyers after they have processed an unsuccessful sale will help to cut down on financial loss.