Five Ways to Prevent Credit Card Fraud at Your Business

Jun 7, 2011

Does your shop accept credit cards? If so, what are you doing to protect your customers’ credit? SmartBlog on Leadership Associate Editor Sam Taute tackled this issue in a recent article.

“Some of the risks that credit fraud pose to small businesses are obvious: Money lost from reimbursed goods and non-refundable processing fees are two examples that can undoubtedly hurt a company’s bottom line,” Taute wrote. “There are more subtle costs too, however. Fraud can indirectly hurt sales by decreasing customer satisfaction and by damaging a company’s brand.”

To combat this, Taute suggested small businesses craft a plan to decrease their vulnerability to all types of fraud.

He shared five steps owners should take then creating the plan:

  1. Identify vulnerabilities in your data-management system
  2. Keep your databases up-to-date
  3. Monitor areas in your business where goods are exchanged,
  4. Know your state’s credit transaction laws
  5. Make fraud protection and ongoing operation.

To read the complete SmartBlog on Leadership article, click here.