South Carolina has over 400,000 small businesses that must protect themselves from credit card fraud. It’s an issue that many small businesses struggle to combat. Forbes Advisor reported 33 percent of small businesses in the US have been impacted by credit card fraud.
Credit card fraud can lead to financial loss, loss of reputation, disputes about business and worse for small businesses. As long as a business accepts credit cards, the risk of fraud exists. However, some steps can reduce the risk.
Secure online transactions
Credit card fraud threatens any small business that engages in online sales. In most cases, the card issuer has to deal with the fraud. But the small business still has to deal with chargebacks and additional costs.
One safety measure requires the customer to enter the credit card’s security code. Also, ask for the expiration date and card number. This can help prevent sales in which a criminal gains access to a credit card number but does not possess the card itself.
Use transaction filters
Filters allow a small business to flag certain transactions. A transaction can seem suspicious because of the amount spent, the IP address or the country.
Shipping speed is a selling point for many small businesses. The faster the shipping, the happier the customer. But delaying shipping can help you prevent fraud by giving you time to verify the credit card and ordering information.
Chargeback data can reveal problem areas and patterns. This makes it possible to track the problem and fix it. Chargebacks can cost a small business anywhere from $20 to $100 per transaction. Preventing them saves money.
Updated credit card reader
Small businesses are at risk if they don’t accept EMV chip cards. Cards with the chip are more secure than older cards that only have a magnetic strip. Also, a business that doesn’t accept EMV chip cards or allows someone to swipe instead of insert the card can become liable for the fraudulent transaction. This can possibly lead to business disputes concerning credit card fraud.
Credit cards are a part of doing business. Any business that doesn’t accept credit cards will likely have fewer sales. Taking steps to prevent fraud is good for small businesses and customers.