Scam Prevention Tricks

Applies to: Payment Processing

Covers how you can prevent scam or fraud incidents in your business. 

From an article that appeared in Floor Covering News in June of 2023:

https://www.fcnews.net/2023/06/exclusive-credit-card-scam-swindles-flooring-retailers/

Summary:  Although there are different variations to how the scam might work, there are rising instances of credit card scams targeting flooring retailers and costing them thousands of dollars in revenue and materials. 

An example is a potential customer calling a retailer to order products over the phone, requesting a will-call pickup. On the phone, the customer provides a credit card that goes through, or an ACH payment. The customer pretty immediately sends someone to pick up the order. Sometime later, the credit card company alerts the retailer that the card was stolen and charges the retailer back for the purchase or the ACH is clawed back due to an incorrect account number, insufficient funds, etc. The retailer has no recourse and is out thousands of dollars. Policies should be put in place to help protect businesses against a variety of scams. Some general tips for protecting your business:

• Require customers to present a valid ID with their credit card. This will help to verify the customer's identity and make it more difficult for scammers to use stolen credit cards.
• Never process a credit card payment over the phone. Always require the customer to come into the store to pay in person. Granted, if you have a history with the customer, taking a card over the phone is less risky than with brand-new customers. 
• Be suspicious of any customer who is in a hurry or who is unwilling to provide any personal information.
• Check the customer's credit card against a credit card verification service to make sure it is valid.