Fraud affects many businesses, so here are some top tips which could help your business.
To keep it simple for you, this article’s split into three sections:
Spotting indicators of fraud
There are some red flags when it comes to recognising fraudulent behaviour in customers. If you see it, try to stop it.
- Hurried and careless high-value purchases.
- Physically unusual payment card - it may be bigger, smaller, a different shape, be damaged or more.
- A nervous customer, or a customer who signs for a purchase more quickly or slowly than normal.
- The buyer checks their card’s signature before signing.
- The cardholder has more than one card under different names.
- The customer asks to break a large payment into small amounts on many cards.
- Multiple declines.
Tip for in-person payments:
If you see any of the above, or have any other reason to feel suspicious, you have the right to ask to see ID before taking the payment.
Card not present payments
- An especially large order.
- Multiple orders, especially to more than one address.
- Customers focusing on the speed of delivery, wanting to send couriers or taxis to get goods on short notice.
Reminder for card-not-present payments:
An authorisation code isn’t a guarantee of payment, it can take up to 120 days for a fraud related chargeback to be raised, and 540 days for a service related chargeback.
General tips that could help prevent chargebacks
Keep your supervisor code safe
Only share your supervisor code or the location of your supervisor card with trusted employees. We recommend all business owners change their supervisor code regularly for added security, just call us and we can do this quickly over the phone.
Set out your policy
Include very clear and concise terms and conditions on order returns and refunds policy.
Make your policy easy-to-find
Display your refund policy clearly on your website or in store. This may help discourage customers who look for opportunities to make fraudulent claims.
Stick to your rules
Make sure your business follows through on your refund or cancellation policy when customers make a legitimate request.
Refund customers as soon as you can
Make refunds as soon as possible and make it clear when they can expect the money back in their account. Customers may be less likely to start a chargeback if they think they can solve their issues quickly and easily with you.
Follow-up refunds in writing
Send an email after the refund or cancellation, reminding your customer when they can expect their funds back.
Strengthen your ecommerce T&Cs
Add a tick box to the checkout page to confirm that your customers agree to your T&Cs and refund policies. This evidence can help counter existing chargeback requests.
Label your company name clearly
Let your customers know your unique business descriptor before any purchase. For example, a business called “Java Café” should have something like “Your credit card statement will display this charge as Java Café”.
Match the refund to the card
If a customer’s refund isn’t taken by the same card that they made the payment with, they can still raise a chargeback. It has to go to the same account.
How we can help
We do our best to prevent fraud in our role as your payment provider. And while it’s an issue we tackle every day, it’s not something we have full control over to end completely.
So if you ever do spot anything you think might be fraud, we’ll do our best to give you advice on how you can protect yourself.