Phoenix, Arizona (PRWEB) October 26, 2012
According to a recent MSNBC article published in June 2012, credit card fraud is up 87 percent since 2010, resulting in a total loss of $ 6 billion. While consumers may be more vulnerable to having credit card information stolen, small businesses are often the largest losers in merchant account scams and credit card fraud.
Business owners with merchant accounts have to take care to avoid scams and fraudulent charges, especially since they are responsible for the expenses associated with a chargeback. In addition, the cardholder may be protected from unauthorized transactions, but the merchant must cover the cost of stolen goods and services. Furthermore, a practice known as friendly fraud may happen when a customer charges back a transaction even though they received a product or service with no problems.
According to Jeff Stephan, CEO of Capital Processing Network (CPN), a leading merchant service provider, fraud and scam prevention techniques will reduce credit card fraud. Business owners owe it to themselves to beware of common schemes, and train their employees to look for instances where transactions are not being processed honestly, said Stephan. Additionally, there is the time element required in processing a chargeback and the increased risk category that may raise your credit card processing fees or even cause you to lose your merchant account.
CPN provides customers with the following tip for preventing and avoiding merchant account scams and credit card fraud: