With Credit Card Scams increasing – internet users have become relatively more aware of its various forms. However, there are still many who give away credit card numbers and personal information online only to regret it later. Credit card scam involves customers being misled into believing that they will be provided with good services, only to find afterwards that they have to pay more money.
Save your business from Credit Card Scam! Beware!
Types of Credit Card Scams
Those with bad credit need to be very careful when it comes to differentiating between legitimate credit opportunities and those that are merely seeking to capitalize on their past mistakes and current desires. Featured below is information detailing some of the more common scams companies use. If you can spot these tricks during your research, you can steer clear from the offending card offer/company!
This can be an assumed identity fraud where an individual pretends to be someone that he is not. Or it can be a financial scam where an individual provides false financial details to acquire credit.
Lost or Stolen Credit Cards
With the advent of modern technology, even the credit card scams have gone high tech. Nowadays, tricksters produce fake credit cards and trick merchants. They also copy information from the magnetic band on the reverse of the credit card, or the data stored on the smart chip.
Postal Intercept Deception
This happens when a card is stolen from the postal service before reaching its owner. Postal intercept fraud has become a less important aspect of credit card fraud, especially in the EU.
This is primarily due to the successful monitoring of those who work for the postal service. Also, the card issuers have started to take various safeguards, such as requiring personal identity confirmation at the point of credit card activation.
Site Cloning and False Merchant Sites
On the Internet, these are fast becoming a common technique of credit card scams for many fraudsters with a proficient aptitude for hacking. They make people provide their credit card details without realizing they have been tricked.
How to Avoid Credit Card Scam?
There are many ways by which you can avoid credit card scam. That includes:
To save your business from credit card scam find out about the company, the kind of businesses they handle, which industry they are related to most etc. Check to see if they are reliable.
Most processors earn huge revenues from chargeback fees and avoid limiting this fees which might help the merchant to minimize the chargeback.
If your business provides a lot of credits to the customers, a business owner will make a lot of money when the processor returns the discount rate which is otherwise charged with each credit. This happens when the business is providing customers with a lot of credit. However, some processors tend to keep the discount rate, considering it non-refundable.
Try to stay with the most popular terminals to avoid credit card scam, find companies who are popular and trusted by most businesses.
Some processors only allow businesses to make up till 10,000 per month, but once this limit has exceeded, their funds are stopped completely. This leads to either slow growth of a high-risk business or in most cases leads to a complete failure.
Low Priced Hardware and Software
Be wary of low priced hardware! You might be paying less the first time, but it will cost you more in the long run. Some credit card processors tend to lock their terminals without the customer even knowing about it. Research can save you a lot of trouble. Be sure to ask around for setup cost, hardware and software prices as well.
When dealing with processors, as a business owner, you need to know about their transaction charges before handing in orders, to avoid credit card scam. At times some processing companies decline charges without telling business owners about it, so it is important that you work with only the reputable processing companies.
Read and re-read the contract carefully before signing up any contract. Do not come under pressure and sign. Do thorough research about the company and what you are getting yourself into.
Save your business from credit card scam, ask advice from someone who has been in the e-commerce market for a long time.
Credit card companies have long warned customers against providing their personal information on the phone to strangers and giving it away online via emails as this leads to credit card scam. Until and unless you are sure that the site is authentic, do not give away your personal information.
Be aware that the business you are giving your personal information out to is authentic and legitimate or you might find yourself to be just another victim of credit card scam.
Use a Secure Browser
Make sure that the server you are using is safe. Websites not beginning with “http” are not secure. Sites asking for your personal information and account number should have “http” before the website address.
Check the privacy statement for the security the company will provide and other related information. Also, read the additional security-related policies that they have.
To avoid credit card scam keep track of your credit and debit card bills, bank statements for any unusual purchase.
In case of any unusual purchase or transaction, notify the authorities immediately. Reporting problems will save you from a lot of trouble.
You must know what credit card companies offer and what your rights as a consumer are. This will help you avoid becoming a victim of one of the thousands of companies that prey on consumers that lack credit card knowledge. XA Technologies also offer the best scam awareness software at realistic prices.