A Retailer's Guide to Credit Card Fraud Prevention

Identity theft is one of the hottest topics around. Butshould always match the signature on the back of the
who are the real victims here? Of course consumerscard with the customer's signature on the charge slip.
are affected the most. While consumers are usuallyThis can be done while the customer is signing, to
not liable for fraudulent charges, it can take years toprevent the appearance of distrust. Now if the
come back from identity theft and it's no small task.signatures don't match, it is perfectly acceptable to ask
Consumer victims may get hit with higher interest ratesfor a picture ID. What if there's no signature?
or even be denied credit. Credit card companies wouldTechnically, the credit card is not valid unless it is
have you believe they are the biggest victims. To asigned. It says so right on the back of the card. Most
certain extent, that's true. If you're looking at purecredit card companies suggest that you require a
numbers, they are losing the most money. But creditpicture ID rather than denying the transaction. If a
card companies are recouping their losses throughcustomer doesn't want to show his ID, then you have
higher interest rates and fees. And they also pass thea decision to make. Are you willing to risk a
buck to retailers who accept fraudulent credit cards.chargeback? If it's a large transaction, it's probably not
Credit card chargebacks can completely wipe outa good idea. You may decide to let smaller
your profits. What can you do to protect your businesstransactions slide in the interest of customer
and your profits?satisfaction. The last thing a cashier should do before
The first thing your cashiers should look at is the fronthanding the card back is to make sure that the card
of the card. Most credit cards have holographicnumber on the receipt matches the number on the
images on the front. Cashiers should also check tocard. It's not too difficult to reprogram a magnetic strip
make sure the embossed numbers haven't beenwith a stolen credit card number.
altered. Fraudsters will sometimes use a clothes iron toMost of your credit card transactions will go smoothly.
remove some of the numbers and then emboss newIf a customer hasn't signed the credit card, make it less
numbers on the card. Then they'll deface the magneticawkward by suggesting she sign the card and also put
strip so it won't swipe. That forces the cashier to"Check For ID" on the signature strip. Explain that if she
manually enter the numbers on the card. If the cardloses the card, someone could sign her name and then
won't swipe for any reason, make sure your cashierthe signatures would match. And explain that you are
gets an impression of the card and that the impressiontrying to protect her. Most customers will appreciate
is legible. This will serve as proof that the card wasthis.
physically present in case there is a chargeback. IfProtecting your business from chargebacks is very
your register does not automatically call for verification,simple. Checking the front and back of the card and
make sure the cashier does.verifying signature only takes a few seconds. Make it
The next thing a cashier should do is check the backan expectation for your employees and follow up with
of the card. The signature strip should have multiplethem to make sure they are doing their part. Involve
colors and/or the name of the credit card company.your customers by providing tips to help them prevent
Fraudsters have been known to remove a signaturefraud. Then you can enjoy your profits without the
strip or cover it with Wite Out® and sign thefear of chargebacks.
cardholder's name. Speaking of signatures, cashiers