Is it really possible to deceive the credit card processing procedure?
Strictly speaking, it’s not possible. One cannot alter the process to change its result according to their liking; however, what swindlers and fraudulent individuals do is use various ways of fraud to be able to transact businesses and purchases using these “plastics” illegally. A fraudulent transaction, once detected, can lead to chargeback, and a chargeback can lead to a chargeback fee. Once these frauds happen too often, not only will it increase credit card processing fees; it can also put the merchant account of the retailer or business at risk.
Therefore, it’s important to know the ways how these individuals scam their way towards fraudulent card usage.
An often overlooked type of fraud is the one done by the employees of the company themselves. They collect the information of your consumers and either sell the credit card info to identity thieves or use them for their own illegal purchases. Of course, this kind of fraud can also happen from the end of the credit card processing service provider. A merchant should always keep credit card information of customers private and place strict repercussions to employees caught doing this heinous crime.
The most common type of fraud, of course, is identity theft. This happens when the thief acquires the information of the cardholder through various ways (such as the one mentioned above, although it could be done as simply as going through one’s garbage). Here, the merchant has to be alert. It’s easy to spot an identity theft (there are a number of red flags that can indicate theft). Furthermore, it is easier to verify the authenticity of the transaction, regardless if it is done in person or online. Many credit card processing procedures make sure to siphon fraudsters according to various factors (this is more common in Internet merchant accounts).
Hackers, meanwhile, target your store’s website to access credit card information of your customers for fraudulent use. Many Internet merchant accounts have programs designed to block these hacking attempts. Fraud usually starts with the card holder. When they become careless, their financial capacity becomes compromised. You need to identity these types of frauds and know how to stop them so you won’t compromise your credit card processing.