Business owners have a lot of things that they must think through and deal with every day. And as a business owner, you have to make decisions that affect how your business runs. One of the things you must think about is protecting your business by merchant fraud protection. The holiday season is when most stores make most of their money. But it is also a time when people will try and fraudulently make claims for refunds to take your hard-earned money.
Top Ways You Can Protect Yourself From Chargeback Fraud
The best way to protect yourself is to educate everyone on what fraud looks like. A chargeback is nothing more than a returned item. When fraud is added to the mix, a person makes a false claim with their credit card company that the purchase has been made by someone else. But here are some ways to keep that from happening to you.
- Keep your codes up to date. Merchant codes change to keep current with the financial markets. The list of codes identifies the reason for the returned item. But if you have evidence that proves the claim is wrong, you can keep a fraud claim from happening.
- You will need to keep a record related to shipping and delivery. You will want to keep accurate records at all times. These records should have what was sold and how it was paid for.
- It is also good to use the newest technology programing to protect your company from chargeback fraud. The new types of technology can identify people that have made lots of returns. It can also help identify purchases that are of a high-risk category, so you can avoid becoming a victim of fraud.
- Keep your payment descriptions current, so people remember where they made their purchases.
- You will also need to keep your employees trained and informed on correctly checking IDs and signatures on each credit card they swipe.
Chargeback fraud is a significant issue during the holiday season. It is a time when people can easily hide their identity because of the number of people making purchases—but having the right people working for you and offering chargeback services. The last thing you want to have happen is for your company to fall victim to a fraudulent chargeback. You will not only lose money, but you will never see the merchandise returned to your store.