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How Merchants Can Avoid Fraudulent Transactions During The Holidays

Ahhh yes, the season is upon us yet again. And that means more shopping, more spending, and more opportunity for fraud. High risk merchant account providers are always on the lookout for fraud. Trying to prevent clients from fraudulent transactions and bad actors is the name of the game.

With that in mind, we want to offer some of our solid fraud prevention techniques that online and physical retailers can use to avoid fraud at all costs during the holiday season.

#1: Have a Process

Look into solidifying your fraud prevention process and suspicious transaction process. A good process can make a huge difference and potentially save you and your store from thousands of dollars worth of fraud over the holiday season.

  • Train staff to identify potentially fraudulent transactions.
  • Create a sheet that can be used to solidify a purchase that includes a driver’s license number and transaction details.
  • Have potentially fraudulent transactions signed and dated by the purchaser.

Document as much about the transaction as possible and train staff to refuse transactions that may seem too fraudulent.

#2: Update Your Software & Security

Take time before the holiday season begins to update your machines. Your POS, your account management software and your security measures should all be running on the latest software update. You may think you’re saving money running out of date software, but your potential exposure to fraud and to criminals drastically increases. A whopping 95% of websites with outdated software are at risk for fraud. Don’t become a statistic, update your POS and data management software as soon as possible.

#3: Chargebacks Can Be a Type of Fraud

Wiley consumers may think they have found a loophole in the form of chargebacks. They can complain about defective products and ask for a return. If the merchant chooses not to provide a return, they can speak with their credit card company directly and issue a chargeback, affecting high risk merchant account holders and causing more issues long-term. Chargeback prevention tips could make a high difference here.

  • Ensure strong, clear, and concise communication with consumers at the checkout.
  • Post signs about the purchase and the terms of the transaction.
  • Maintain a friendly refund policy. Ultimately, a return is better than a chargeback.
  • Anything purchased that results in a monthly charge should be followed up by email or phone.

Having a plan in place to handle chargebacks can save your business credit rating in the future.

Consumers Are Warier of Barriers to Purchase

The internet has spoiled all of us. Waiting in line or having to answer 6 questions about charities, and phone-numbered accounts, has become more of an irritant to consumers in recent years. In a recent survey, 40% of consumers said they would abandon a website if that have to wait more than 3 seconds for it to load.

And waiting in line at a physical location is even more annoying for consumers that are used to the speedy service and easy shopping experience online. Nearly 69% of surveyed consumers say that they have a negative emotion while waiting in line at a store. Waiting in line is the ultimate barrier to purchase but shopping online creates more potential for payment fraud.

Keep these tips in mind and act on them as soon as you can. The holiday season is far too crazy to start updating your process so start in November!

Ryan Kemp Zulu Shack Creative
( Director of Digital Marketing )

I am passionate about delivering results and helping my clients succeed. With my expertise in SEO, branding, and marketing, I lead the agency’s efforts to create and implement effective strategies that drive business growth. Our all-inclusive approach sets us apart from other digital media companies and ensures that our clients receive the full range of services they need for online success. If you can think of it, we can build it!

Zulu Shack Creative team members thrive on momentum. Like Zulu warriors, we strive to spearhead your idea with speed and quality.

When I’m not helping my team implement new digital marketing strategies, I enjoy playing music, hosting poker nights, reading Stephen King novels, and spending time with my wife and baby daughter.

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