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Credit card fraud

Small businesses can be affected by credit card fraud, which can be perpetrated online as well as in offline scenarios.

Our Bulletin 40 publication includes a discussion of the issues arising for small business merchants accepting credit card payments for online, mail, telephone and face to face sales.

Things to remember to reduce the risk of credit card fraud:

  • Read and be familiar with your merchant agreement, merchant operating guides and all other documentation governing the use of the facility. Make sure all staff using the facility are familiar with these

  • The fact that funds are credited to your account does not stop the transaction being later charged back. Authorisation and credit of funds do not guarantee that the transaction is genuine

  • Be wary of anyone who offers numerous credit card numbers

  • Do not accept ‘authorisation’ to debit a card from a person claiming to be the wife, husband, partner, friend etc of the cardholder. Only the actual cardholder can authorise a payment

  • Be wary of any person who asks you to sell them goods that you do not usually deal in or asks you to provide cash in return for a debit to a credit card. Apart from charge backs, you run the risk of being in breach of your merchant agreement

  • Do not allow your merchant facility to be used by anyone other than you or your employees

  • Be wary of a single order from overseas followed by large and repeated orders from friends or associates of the original purchaser

  • Take additional steps to check that the customer is the cardholder.