Fraudulent charges and hacking can happen to the best companies. While many think that they are just prone to these issues, they are not. True, high risk merchants have a higher risk of incurring fraudulent charges, but there are things that every business can do to avoid fraud. While many of these things are common sense, many are not, and you may be surprised at how easy the process can be.
First off, update your security! This should be commonly done in your business, as most security programs expire after one year. You need to also make sure that your merchant account processor also updates security features on their end, to help protect from fraudulent issues.
Also, you need to know who you are sending to. Many times, a domestic credit card with a foreign address or PO Box can result in a fraudulent charge. By sending to only home addresses in the USA and Canada, you are eliminating some of the threat.
Make sure that your return and cancellation policy is clearly stated. Often a miscommunication or misunderstanding can lead to a chargeback. A chargeback is what happens when an item is returned, an order is cancelled, or fraudulent activity occurs. Chargeback fees can be upwards of 270% of the original charge – which can quickly add up. You also need to invest in chargeback insurance. Chargeback insurance, while it cannot eliminate all chargebacks, it can help you vet potential chargebacks, to week out scams and legitimate purchases. Chargeback insurance can also keep chargeback fees low, which is a good thing for you, your customers, and your merchant account processor.
Not all merchant account processors offer chargeback insurance. One of the top-rated is EMB. With EMB, you can obtain chargeback insurance in as little as three business days! This is record speed, and the service is fantastic to boot. For more information about obtaining chargeback insurance, contact us today.