fbpx
Categories
eCommerce

Tips for Protecting Your Business From Remote Payments Fraud

As business owners step away from in-store purchases and focus primarily on online options during the pandemic, it’s important to review the implications of remote payment fraud. Especially for businesses that don’t primarily function as an eCommerce enterprise, remote payment options can appear intimidating. As online alternatives continue to keep businesses afloat, protecting your operations from fraud is a must. Here’s how you can get started. 

1. Arm Your Payment Page With the Address Verification System (AVS)

A hosted payment page removes the security provided by a physical credit card, ID, and being able to interface with a customer in person. Thus, some remote credit card terminals will charge higher rates on transactions that require additional information regarding a customer’s billing address, zip code, and contact information. 

These additional requests manifest as AVS prompts and can result in fraud if they are dismissed. Responding to AVS prompts can take time away from your hands but can help reduce the risks of fraud and keep your rates low. 

2. Sell Only to Known Customers

New prospects are what make a business flourish but if you aren’t well-versed in accepting remote payments, can also lead to potential fraud. This is particularly true when it comes to accepting subscriptions, as customers sometimes receive products before their credit card is charged.

Incorporating an anti-fraud system takes time, so prioritizing known and trustworthy customers, meanwhile, can protect your business from losing money. Nowadays, lifelong customers tend to patronize their favorite businesses on a regular basis, which you can easily take advantage of while you consider your options. 

3. Trust Your Gut

While it may seem counterintuitive, trusting your instincts when it comes to evaluating a sale that seems too good to be true can keep fraudulent transactions at bay. Perhaps you’ve come across a customer whose billing and shipping addresses don’t match or whose credit card information simply won’t go through. If so, you may be better off foregoing the sale or even choosing to temporarily suspend international or out-of-state orders. 

4. Create an Electronic Defense System for Sensitive Data

Not only does a robust security system protect your customers’ data—but it also protects your business. By adhering to PCI security standards and assessing any third-party provider’s cybersecurity risk, you can build an impenetrable payment system that allows clients to trust you and you to trust your clients. When outsourcing a payment processor, review their disaster recovery strategy and consider whether their protocols align with yours. 

Conclusion

No business owner wants to lose a sale but while some of these practices may seem unnecessary or over-the-top, they’re also useful in preventing scams and chargebacks. Over time, you may choose to relax some of these measures but should prioritize AVS for over-the-phone transactions. 

With Payments Page, you can incorporate branded elements into your payment portals such as unique payment buttons and a stunning design that reflects your business. Better yet, you can ensure that your transactions are fully protected and that your payment gateway displays comprehensive business information to clients. Ready to accept payments? Sign up today with a 30% discount!

Categories
eCommerce

Chargebacks: What Are They and How Can My Business Handle Them?

Your business is running smoothly, sending out product after product. You finally begin reaping the benefits of years of hard work. All is well—until you receive yet another barrier to success: a chargeback. Chargebacks are one of the most detrimental occurrences to any business, and as an entrepreneur, you need to be wary about this especially in online platforms. 

When you allow chargebacks to get out of control, your business suffers huge losses not just in profit, but reputation. If you wish to operate in the most profitable way possible, you need to ensure that your chargeback history remains untarnished. 

To learn more about chargebacks and how to protect your business from their damaging effects, here is a quick guide to follow:

What are chargebacks?

Chargebacks are basically transactions that are disputed by the customers. Customers can dispute an item on their transaction reports or credit cards. When an item is successfully disputed, the seller can reverse the transaction and return the customer’s money.

Chargebacks are designed to protect customers from fraudulent transactions, but chargebacks can also be subject to abuse. Some customers relentlessly make use of chargebacks and cause losses to the company, which can especially hurt small businesses. Other times, clerical errors can also lead to chargebacks. These errors may seem inevitable, but there are ways for businesses to reduce the likelihood of having to deal with chargebacks.

How can I protect my business from chargebacks?

Given the detrimental costs associated with chargebacks, you need to ensure that your business remains protected from untoward chargebacks. Here’s what you can do:

1 – Ensure that your customer service remains topnotch

Your customers serve as your business’s source of life, so ensuring that they are satisfied with every aspect of your business is paramount to your survival. That said, ensure that they always have access to quality customer service. This includes making sure that return policies are clear during the transaction. Bear in mind that customers raising disputes are likely looking for solutions—most are prompted to initiate chargebacks due to unsatisfactory services. 

2 – Enlist the help of an Address Verification Service (AVS)

Address Verification Services (AVS) can work to reduce fraudulent transactions. An AVS can identify suspicious transactions by checking for discrepancies in a customer’s name and address used in the transaction. It compares the customer’s details with the given data at the credit card company. 

Should the AVS detect any discrepancy, it could be a sign for you to proceed with caution and ask for further information, or perhaps decline the transaction. If the information matches, however, it is likely that the transaction is valid. 

3 – Always ask for CVV/CVC codes

Chargebacks are heavily shrouded in fraud, so to ensure that your business does not fall victim to such practices, require your customers to input CVV/CVC codes. These pertain to the 3 digital security codes on the backside of credit cards, which is particularly important for online shopping. By doing so, you ensure that the person using the card is indeed the owner, and not someone who has stolen the account number. 

Keeping Your Business Secure

There’s no other way to place it—chargebacks can lead to major losses. If you own a relatively young business, this could lead to dire consequences, especially if you get caught in the chaos of fraudulent sellers. That said, you need to ensure that you protect not only revenue but your reputation. Make sure to keep this guide in mind when dealing with customers and remember that chargebacks are much better off prevented. 

If you wish to build a payment system that delivers and protects, Payment Page is the place to go. We offer you a WordPress plugin that creates a hosted payment page, integrated heavily with the ever-reliable Stripe. Build and protect your business by offering better payment options—reach out today.