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5 Ways to Prevent Business Credit Card Fraud


There are many signs of business credit card fraud and unfortunately, it will occur sometime within your multiple business transactions. If you expect to get into the online business, this is going to be a field you're going to need to study to reduce incurred expenses. There are ways you can limit and/or prevent the damages of business credit card fraud.

1. Write an Effective Return Policy

The most common issue is people who receive items and would like to return the product. In the process of being denied, the purchaser has now subjected you to a chargeback (and not returning the product, which is theft). Do not hide your return policy if you want to avoid things like this from happening. Make sure your company's customer service is available so that valuable questions are able to be answered. Most companies need to evaluate their return policy. Do you only accept "sealed" goods, or is it okay to exchange goods; do you have a 30 day period, or a 60 day one; do you need proof of receipt? This will help reduce any potential product return fraud.

2. State Who You Will Ship To

Some countries are notorious for buying products with other people's credit cards and then selling the items for 100% profit. To address this issue, ship only to the country you are in, or select ones you are familiar with. It saves headaches, and keeps would-be bandits from wasting their time.

3. Know Which Products are Prone to Fraud

If you are selling high end items, like computers, electronics and gaming merchandise, you need to know that these are highly-fraud based items. They are often compact enough to ship, and highly valued. Understand and familiarize yourself with shipping policies and how to insure your products properly. Know how your business credit card is being used and when, especially when it comes to purchasing your high-valued products. It may be better to make individually purchases instead of being on any type of automatic purchase cycle, especially for items that are expensive.

4. Look for Irregularities

As a business, you need to always question high priced transactions, because anyone putting down hundreds to thousands of dollars without so much as contacting you is a good sign of trouble. Reason being is that credit card fraud can occur when people rack up a quick bill. Other signs are when extremely low miniscule transactions add up and occur right before a rather expensive transaction. If one person combines a few "low" purchases with a very high one, it's a red flag, because the previous one was a testing ground (same day shipments as well, in the case of certain African countries).

5. Follow Up

Some companies have dispute features (PayPal), where evidence is crucial in order to maintain your records. Understanding these dispute features and what policies are offered with credit card companies will not only bring you peace of mind, but will also help you to indicate potential fraud occurring on your credit card or any type of business card you may use. Doing so will save hundreds. Finally, identify your customers, their needs, and how your business can avoid credit card fraud. By enforcing your own policies, procedures, and being proactive with regards to how money is coming in and out of your business, you will be ready to tackle any credit card fraud problems that may filter in.

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