What Happens if You Accept Payment from a Stolen Card?

When you set up your business with a merchant account to allow credit cards for payments, you are giving your business the advantage of more potential sales. Unfortunately, allowing credit cards as payment is also putting your business at risk. The main result of processing a stolen credit card will be dealing with a credit card dispute. However, it can also put your credit card processing account in danger and leave you feeling the financial repercussions, as well.

The result of many credit card disputes is a charge back. A charge back to your account means that you are now liable for paying back the amount charged to the owner of the credit card. Along with the transaction amount, you may also have to pay fees to your credit card processing merchant account provider. These fees can quickly add up and decrease your profits.

What happens when your merchant account receives a high number of charge backs? One credit card processing company would increase your fees, as your business could be considered high risk. Another may cancel your merchant account altogether. Regardless, the outcome of incurring an increase of charge backs will not be good.

How can you prevent your business from getting charge backs? First and foremost, your customer service must be your top priority. Should your business receive a phone call from a credit card holder stating they never made the purchase, you must take the call seriously. It is much better to offer a prompt refund than to let the situation escalate into a charge back.

Your business should also make use of several preventative measures to deter credit card fraud. Take all means necessary to minimize the number of charge backs, including address verification, signature comparison, and security code verification. This may not eliminate them entirely, but it will assist you in keeping the number of charge backs down.

Accepting credit cards as payment is an important aspect of business and you must not let the risks associated with it prevent you from growing your business. As long as your business takes customer service seriously and takes preventative steps in credit card fraud, you will find that your merchant account can be one of the most useful tools in your business.

Leave a Reply

GET FREE QUOTE TODAY AND START SAVING


Testimonials

It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

Call (866) 837-0751 for details.