How a Business Reports Credit Card Fraud

Individuals are not the only victims of credit card fraud. Businesses, from large corporations to small local shops, are the target for a number of different fraudulent schemes. If you are a merchant and find yourself a victim, you could lose capital, identification security, or, even worse, the business all together. Here are the most critical steps you need to take to catch the cyber criminal.

Step 1: Document the Fraudulent Transaction

As soon as you suspect your business has been victimized, document everything you can about the fraudulent transaction. Documentation will help you build a criminal case, track fraud within your business, and get the root cause of how you fell victim. If you can, capture and record the shipping address, shipping telephone number, and IP address of the fraudulent transaction. A signature at the time of delivery is also a very strong piece of evidence for building a solid case.

Step 2: Create a Negative File

A long-term tool that is very helpful for any merchant is a negative file. A negative file focuses on fraudulent criminals that have graced you with their tainted touch. Keep a record of all the credit card information, names, shipping addresses, and IP addresses. If you have time, compare every transaction with your negative file and if there are any close matches, launch an internal review.

Never immediately cancel a transaction based on your negative file unless you are absolutely positive it is a fraudulent  profile. The last thing you would want to do is reject a valid consumer and insult a potential customer.

Step 3: Report the Fraudulent Crime

To build a solid case for reporting to the authorities, summarize all the information you possibly can, make it understand, and take it in person. Make sure that you have an executive summary, with all the most important details are early and often. The most critical details to include, if you can report them, are the IP address and the shipping address.

The greatest way to protect your business from credit card fraud is by employing credit card processing services from a company who proactively prevents it. Veritrans has the credit card processing fraud prevention your business needs with superior quality service and no hidden fees. Guaranteed. Veritrans offers retail, wireless, online, and MOTO processing for all types of major brand cards: Visa, MasterCard, American Express, Discover, JCB (Japan’s Credit Card), Pin-based debit cards and EBT (food stamps) cards.

Even if you already have an account somewhere else, call Veritrans for a free and confidential analysis of your current contract and fees. We will protect you from fraud, and help you understand and walk you through our cost-effective card processing service solutions.

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