Top Five Tools to Prevent Credit Card Fraud at Your Business
Unsure of which payment fraud prevention measures are right for your business? You're not alone. There's plenty to take into account when it comes to protecting and securing payments for small businesses and their customers. The goal is to implement smarter, faster, easier approaches to payment security. Start by prioritizing security for your credit card payments with these top 5 recommendations that help protect your business and your customers’ data.
1. Fraud Tools — Stopping Card Crime Before it Starts
Card fraud and identity theft happens in-store and online. In-store, it's typically focused on the presentation of counterfeit or stolen cards. EMV chip card acceptance, which you've likely heard about by now, can go a long way in stopping fraud at the point-of-sale in-store. Fraud detection and prevention also happens during the authorization process when, for example, cards reported lost or stolen can be identified by issuing banks and declined during the approval process. This becomes even more valuable for online payment systems where payment securities scour transactions where a cardholder is not physically present. It's easier to present counterfeit or stolen card data online, but there are payment securities available for online payments too. Whether you're selling in-store or online, make sure you understand what fraud detection and prevention services will be part of the payment processing securities available to you.
2. EMV Terminals and Chip Card Acceptance
Chip card acceptance has become commonplace internationally over the last several years and it's begun to take hold in the U.S. over the last year. Additionally, as of October 1, 2015, there's a shift in point-of-sale fraud liability based on the weakest-link in the approval process. If your store is not using an EMV-enabled terminal payment system, you may face an increase in the number of fraud-related chargebacks that you're now responsible for. Chip card-reading devices are now more or less necessary for all businesses accepting credit cards as the number of U.S. credit cards issued with the EMV chips has grown exponentially over the last year. The chip cards ultimately are designed to protect you as a merchant as well as your customers. They're nearly impossible to counterfeit and as a result they offer a layer of fraud protection to you, your customer, and to the payment system at large.
What's critical to remember is that the October 1, 2015 fraud liability shift now means your business might be held responsible for more liability chargebacks, and more real fraud costs, if you're not EMV ready. The shift now pushes liability toward the weakest point of protection in the payment approval process. You can learn more about that by reading the feature Navigating EMV, which looks at who's now responsible for what when a fraudulent transaction happens. Learn more about EMV chips in our Safer Payments section on Vantage Point.
3. Tap and Pay POS Technologies
A point of sale system or terminal that can handle mobile payments means your customers can simply whip out their phones to complete their purchases. It leaves them remembering how easy it is to come to your store and buy something because of the efficiency in paying for goods. There's a good chance that convenience is driving the desire to use a mobile wallet. Yet, most mobile device payments offer a level of protection within the wallet and approval process that offers some of the strongest payment security technology available. Consider whether a terminal or system that allows for near field communication (NFC) is right for you. NFC is one of the technologies that help make mobile wallet transactions such as Apple Pay, Android Pay and Samsung Pay possible.
4. Compliance Tools
Even the smallest of businesses need to remain PCI DSS compliant. Those are standards associated with the handling of payment transactions, payment data, and many associated procedures. PCI DSS standards provide insight into how payment data and processes should best be handled. In an increasing number of cases, your payment provider may provide solutions such as those available through OmniShield Assure, which help protect you and help you remain compliant.
5. Basic Payment Security Procedures
Payment securities and payment data protection starts with people. Become familiar with best practice in how you and your employees should be handling customer payment cards, data and transactions You don't have to know anything about tech to practice basic common sense safety rules. It starts with unique user names and passwords for the systems you use. It continues with making sure you understand how card information should and should not be handled. It concludes with understanding how secure payment transactions are optimized, including EMV transactions when available.
Getting into good habits now will further protect you and your customers against the effects of fraud and card data theft.