Chargeback Prevention Starts with Fraud Prevention

Chargeback prevention is one of the foremost concerns of online merchants. It’s always galling to have to send money in the wrong direction, and it’s even worse when the reason for it is outright fraud. With fraud, you’re not only out a sale but often, you lose your merchandise as well. Fortunately, there are ways to catch most of it before your products hit the shipping stream.

Use a Merchant Account with Fraud Prevention Tools

A merchant account that offers the right settings will, when those settings are properly tuned and activated, do much to increase your chargeback prevention success. Some of the typical options include automatic checking of the delivery zip code against the zip code of the credit card holder’s billing address, checking the card number against a database of stolen numbers, use of the Cardholder Dispute Resolution Network, instant notification of payment disputes, and more. The Cardholder Dispute Resolution Network is a fairly new system that allows chargeback and dispute information to be shared between card issuers and merchants and can let you spot a serial refund-seeker before you complete a transaction.

Manually Check Any Suspicious-Looking Order That Gets Through

Sometimes, even the best automated systems aren’t enough. This is why you should always check strange-looking orders – especially those for unusually-large amounts of merchandise – for fraud. Check Google Street View to see if the destination address is a vacant lot, look up the phone number the customer gave you as well as calling it, and check the origin area of the IP attached to the order.

These are some of the best ways to prevent online ordering fraud and the chargebacks that go with it. If you need a merchant account that will automate much of the work, just contact us. Our Chargeback Defense system is just what you need.

3 Reasons Why Your POS Needs to Handle EMV Chip Card Acceptance

Over the last few years, many credit and debit card issuers have added the EMV chip to their cards. These are the little golden spots on cards that look somewhat like mini circuit boards. Inside them, microprocessors are embedded that encrypt data and make it more secure during transactions. There are many upsides to enabling your point-of-sale (POS) equipment for reading these chips. Here are some of the main benefits:

Transactions Gain a New Layer of Protection

Use of the EMV chip cards thwarts the use of skimmers, which steal information from swiped credit cards. They also prevent other forms of “sniffing” credit card numbers and transaction information done with other methods. Many customers are wary of such risks thanks to extensive media coverage about such fraud. These people will be glad to be able to use their chip cards, and some may even shy away from doing business with you if you don’t have it.

You’ll Lower Your Legal Liability

If someone gets their data stolen and points at your company, you’ll want to be able to show that you took all reasonable steps to protect their information. This includes using an EMV-capable card reader.

Your Company Will Be Seen as More Up to Date

EMV chip card acceptance has now been around long enough that people are seeing it as the standard. If your store or other outlets still force everyone to swipe their cards, it’ll be seen as a bit behind the times. In some areas, customers may even comment to this effect. Make sure you give the impression of being fully ready for modern business by adding this basic upgrade to your POS systems.

To learn more about upgrading your system to read EMV chips, just contact us. We’ll be glad to explain the technology and give more details about what makes updating worthwhile.

Why It’s Important for Your Payment Processor to Offer a Free Authorize.net Gateway

Authorize.net

In order to accept online payments, a business has to have a special gateway to connect to the processing system. One of the most-used and trouble-free solutions is to use Authorize.net, which is the leading provider of online payment gateways. Authorize.net can also process transactions that are entered directly into its system, so it’s easy for you to sell products and services from a remote, but physical location such as a fair. Getting setup with them, however, requires going through a payment processing company – they do not deal directly with end-users.

Some processors charge high set-up fees to add Authorize.net to your account because they know that your only other option is to use a less well-known, and possibly unreliable, solution. This adds expense to your set-up cost that, as it turns out, is entirely avoidable.

Avoiding the set-up cost is simple. All you need to do is choose a provider that offers a free authorize.net gateway as part of its package. Then, you not only get free access to Authorize.net, but the account creation is done for you. You’ll just need to take care of the technical details of connecting your site, something your merchant services agent can likely help you do. With many shopping cart software options, all you need to do for this is enter your account number into the relevant fields.

BAMS, a leading payment processor, does more than just give you the free gateway. They provide physical payment solutions as well as virtual ones, and they examine your application to find cost savings for you whenever possible. This makes it easy for you to get all of your payment needs handled under one roof at the lowest possible cost. To learn more, just contact us and we’ll explain all that you need to know.

 

Faster Cash Flow with Next Day Funding

For businesses that use credit card payment systems, getting their funds is the challenging part. The standard cash flow payout system that banks give to companies sometimes inconveniences businesses when they urgently need the funds. Next day funding systems cut through this gap and offer companies their deposits a day earlier than normal. So, why do you need a fast payout?

Fastens the ACH network

Merchant accounts receive funds into their accounts after two business days using the ACH network. The system processes the merchants overnight between bank accounts and businesses end up receiving their funds two days later. What Next day funding does is it allows the merchant’s service provider to process your request on the same day and start the fund’s transfer into the ACH network before the cut-off time. This system then deposits in the merchant’s bank account on the next day.

Improves efficiency of your company

Delays slow businesses down. Merchants that have high sales, especially during the weekends, usually expect their profits in their accounts by Monday. Improved cash flow enables the activities to run smoothly, and it also allows the firms to grow. Next day funding allows your company to meet the flexibility it needs in running daily operations, keep the books up to date, and make payments quickly without waiting for 2-4 business days.

It’s cheaper to process

Service providers ask for minimal fees when handling this sort of payments. The costs depend on the processing volumes your firm does in a day and on your sales. No additional transaction fees as required by the providers and businesses save more money and enjoy better profits. So, whether you are processing Visa or MasterCard, American Express or Discover the merchant account provider should assure that your funds are in your accounts faster.

Preventing Fraud Related Chargebacks Is Essential In E-Commerce

From time to time, chargebacks are an unavoidable part of being a merchant — like returns and customer complaints. Chargebacks are much more costly to your business, however, and while you might not be able to avoid them completely, you should be taking steps to prevent as many as you possibly can.

As we see criminals becoming more sophisticated and cases of online theft and fraud rising, it’s more important than ever for e-commerce stores to protect themselves from chargebacks related to fraud.

Verify that information.

It can be hard to ensure the person using a card online is really the person who owns the card — unlike face to face transactions, it’s a lot harder to simply ask for an ID and make sure names and faces match.   Many payment gateways handle these processes automatically.  There are still steps you can take yourself to reduce chargeback fraud, however.

  • Collect all of the customer’s information — Full name, billing address, billing phone number, and shipping address.
  • Use the Address Verification System (AVS) to make sure the provided information is valid.
  • Use the security code on the back of the card to authorize the transaction — this is usually 3 or 4 digits, depending on the card issuer.
  • Use a delivery service that requires signatures, especially for high-cost items or sales.
  • Have a clear policy in place about shipping to addresses that don’t match the billing address. For example, if you sell a product that’s commonly shipped as gifts to other people, make sure you’re still protecting the paying customer.

You can also consider recording customer’s information such as an IP address or device ID when processing online purchases, which will help protect your business and provide vital information for investigations should a fraudulent transaction occur.

It’s wise to also be cautious when shipping and receiving orders from overseas, or when you’re processing transactions that are much larger than usual — make sure you’re taking steps to verify all the information is valid.

Keep communications open.

While sending your customers emails about every step of the shipping process may seem a bit pushy, it’s actually a wise idea. Letting your customers know what’s going on with their order not only keeps them abreast of the situation, but it also shows them that you’re paying attention to them and they matter to you as a customer.

Follow up emails and phone calls can also help catch fraudulent transactions before they get too far. Getting an email or a phone call right after a purchase occurs can alert a customer to stolen information immediately, which will allow them to work with you and their card company to handle the matter quickly and efficiently. If they don’t see it until their card company alerts them to fraudulent purchases OR they see the charge on their bill, well, here comes the chargeback!

Working with the right merchant services provider can help you automate these steps, which will save you time and money, protect your business, make your customers happy, and give you peace of mind. You’ll never be able to prevent ALL chargebacks, but that doesn’t mean you can’t take steps to keep those numbers and costs as low as possible.