In the news, we hear of security breaches from large retailers that credit card data is exposed and thus stolen. This data is then posted on the dark web to be sold to others that will try and use these credit card numbers for fraudulent purchases. Not all of the credit card numbers are still valid and usable. The fraudsters will go or call an unsuspecting business looking to purchase expensive items that can later be fenced and converted to cash.
Here is an example of a real-life situation that has occurred many times to some businesses. An auto repair business selling tires receives a call to purchase large expensive tires. They will not need them mounted and will make arrangements to pick them up later that day. When they go to pay, they have a number of stolen cards to use. Or they don’t know which ones are good. They may need to give the unspecified business more than one credit card. The fraudsters know how to explain why some credit cards may decline. Days later after the transaction is paid for and the product is picked up, the business receives a dispute notice as well as funds debited from the business bank account. Because it is fraud, the business is held responsible for the loss. Just because there is authorization, it does NOT mean the card is good and not stolen. On a side note, if the transaction was completed with a chip card and the card was chip read then the liability rest with the issuing bank provided all rules are followed. This brings up another issue to be aware of is if a chip card will not read and the message on the terminal is to swipe, it might be advisable to ask for another form of payment.
As a business that accepts credit cards, it is your responsibility to exercise due diligence. Credit card fraud takes all different forms. When there is an unusual situation, like a large purchase, ask yourself: Does this make sense about the purchase and transaction? Do they need to give you more than one card? Did one or more cards decline?
The Billing and shipping address should always match. Google is your best friend – Google info trust but VERIFY. If slightly questionable and it’s a B2B sale – the merchant should call the business from a number found online and write down the name of the individual they are speaking with.
We are here to help you should you have questions about a suspicious transaction or anything related to Point Of Sale systems and credit card processing solutions.
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