Ways Small Businesses Can Prevent Credit Card Fraud

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Each year, millions of customers use their credit cards to make purchases. If your company allows customers to pay with a credit card, safety precautions should be implemented to prevent credit card fraud. What are some ways that your company can reduce credit card fraud?

 

Don’t Keep A Record Of Customer Credit Card Numbers

 

The easiest way to suffer a breach of sensitive customer information is to keep it on file. Although customers may be upset that they can’t keep their credit card number on file to make their next purchase faster and easier, it is vital that sensitive information is erased as soon as possible. Customers would rather take a few extra seconds to enter their information, as opposed to having their information stolen.

Respond To Any Reported Security Breaches As Soon As Possible

 

If you or any of your employees have reason to believe that there has been a data security breach, address it as soon as possible. If caught soon enough, the customer can have their accounts frozen before a thief can use them to make any unauthorized purchases. Additionally, anyone who tries to steal customer information may be caught if they are found out soon enough.

 

Keep An Eye On All Terminals

 

Stealing customer information is easy if you have a credit card skimmer attached to a credit card terminal. What the skimmer does is collect and store the credit card numbers of anyone who uses that terminal to make a credit card purchase. Therefore, it is crucial that you have an employee monitoring the terminals at all times or a camera keeping an eye on them at all times. This will eliminate the possibility of sensitive customer information becoming compromised.

Further Reading:  Elements of a Great Brand Name

 

Encryption Is Key In The Fight Against Credit Card Fraud

 

Proper encryption methods will protect the credit card numbers of all customers who use their card to make purchases. This is because a criminal is not going to see a credit card number as he or she looks at the transaction while it is being processed. Instead, all a criminal will see is a bunch of letters and numbers that mean nothing. This keeps your customers safe while ensuring that your company does not become the target of a lawsuit.

PCI Compliance Is Not Optional

 

In most cases, your company will have to be PCI compliant if it wishes to accept credit or debit cards. Additionally, most credit card companies won’t allow you to accept their cards unless you are compliant. The good news is that complying with PCI regulations allows your company to be certain that it is doing everything that it can to reduce the risk of a customer having their credit card information stolen by a criminal.

 

If your company is looking to reduce or eliminate credit card fraud, it would be a good idea to follow the steps outlined above. Your customers will be happier, your company will not have to worry about security breaches and the credit card companies will not have a problem allowing your business to accept their cards.

Author: Michelle Latham – Follow her on Google+.

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