How to reduce credit and debit card fraud this holiday season
Christmas is a time for giving – but unfortunately many people also see it as a great opportunity for taking. Fraudsters like to operate in busy periods when staff have less time to scrutinise transactions.
A favourite scam at busy times is requesting cash refunds on fraudulent credit/debit card transactions. Remember, merchants with ‘Card Not Present’ facilities are liable for fraudulent payments that occur through their facilities. So, to help ensure you don’t get caught out, now might be a good time to remind your staff of the steps to take when processing refunds.
Here’s a refresher of the process to follow:
If a customer is returning goods which have been paid for using either a Credit or Debit Card, do not give the customer a cash refund or credit to a bank account.
Process the refund back to the same card that was used for the original purchase.
Your staff will be able to match the transaction receipt to the card using the last 4 digits of the card used to make the purchase (see below example).
Following this process helps to avoid issues with chargebacks from customers. It also ensures you receive a credit to your Merchant Service Fees for refunds to Visa, Mastercard or UnionPay transactions.
Other ways to protect your business from card fraud