Online fraud is a business owner’s nightmare. When a customer’s card or identity is stolen, they risk losing their money, but they can talk to their bank and possibly get it sorted out. However, when it’s your business that is being defrauded, it damages your reputation–potentially beyond repair. Future customers may have a hard time trusting you or buying from you, which can be a disaster at any level.
The best way to prevent online card fraud is to use a reliable payment processor. They have in-built security measures, and many have already earned the trust of your customers. Many of these merchant processors are already intrinsic parts of your customers’ shopping habits, so piggy-back on their reputations and benefit your business. Here are some anti-fraud practices that good payment processors offer as part of their service package.
- Speed up your verification
In the offline world, cash is carried in armoured trucks. They have a heavy human guard, but they also have tight schedules and low transit times. The faster they reach their destinations, the less they’re likely to be waylaid. Similarly, instant verification reduces the chances of credit card details being intercepted.
- Encrypt all transactions
Online systems don’t read information the same way we do. We see numbers, words, pictures, and gifs, while computers just see 1s and 0s. Still, they can decipher this information in nano-seconds, much faster than we can read. End-to-end encryption ensures any information is turned into code both by the sender and the receiver.
To intercept this transmission, an interceptor would need both the key belonging to the sender and the key belonging to the receiver in order to understand the information that was shared. By using a payment processor with military-grade encryption, you ensure that even if a fraudster could hypothetically steal information packets, all they’d get would just be gibberish.
- Follow PCI protocol
There is a list of twelve card safety protocols that the credit card companies expect you to apply before they let customers use their cards to buy your stuff. These requirements are listed by the Payment Card Industry Council (PCI).
For more information on fighting fraud through credit card processing tips, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.