Credit card fraud, especially card not present fraud is on the rise. Is your business ready to fend off fraudsters?
Card not present means the buyer’s credit card is not physically present when completing the transaction. These transactions are often done for sales ordered over the phone, by email or online. Without the credit card in-hand to use the chip and PIN technology of your point-of-sale machine, your business will not have the protections available through the security features of chip and PIN.
Card not present fraud happens when a fraudster used a stolen credit card and the real cardholder later disputes the transaction. This creates a chargeback for your business, requiring you to pay back the amount you charged to the credit card. This is lost revenue. Your losses increase if the goods and services are already in the fraudster’s possession and can’t be recovered.
If you process card not present transactions, take steps reduce your chances of being a victim.