Get What’s Coming to You

1. Restrict access to refund capabilities among your employees. For example, require manager approval.
2. Ensure refunds match a prior sale.
3. Review merchant statements and monitor refund rates.
4. Restrict employee access to customers’ credit card information; that is, block the card number or just the last four digits.

[Editor’s note: For tips on how to prevent internal loss in your distribution center, see “Safeguard Your Inventory,” April 2004 Catalog Success.]

Future Forms of Fraud

New forms of fraud are being developed every day. What once was an aberration becomes mainstream in no time. For example, phishing, in which fraudsters trick consumers by duplicating a company’s Web site (i.e., to request that they update their information with a credit card number, address and phone number) has become a serious issue for both retailers and financial institutions. You must remain aware of the types of fraud in vogue and help your customers understand how to avoid the latest scams.

Conclusion

Some best practices are easy and inexpensive to implement, while other services may add to your payment acceptance budget. Nevertheless, the old adage “You can’t afford not to” has never been truer. Work with your processor to decide what is right for your business. Use these methods, and you’ll save both time and money. And best of all, you’ll find yourself with more time to concentrate on your business, instead of on payment fraud.

Helpful Web Sites

Your acquirer can offer you fraud-prevention guides, as well as updates on card association rules. Here are some helpful Web sites to check out:

www.merchantriskcouncil.org

www.scambusters.com

www.antifraud.com

www.bmitf.org (This is the site for the Business Mailing Industry Task Force, a subscription-based database of suspected fraudulent addresses.)

www.ic3.gov (The site for the Internet Crime Complaint Center; use this to file a complaint about online fraud.)