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A COST – EFFECTIVE METHOD
TO FIGHT PAYMENT FRAUD FOR SMALL
BUSINESSES
Online business is one of
the best and most effective ways to
expand your company and increase your
profits. You will be able to serve
customers without the geographical
limitations. However, the biggest
drawback of online business is that it
is most susceptible to payment fraud.
Payment Fraud is
increasing very quickly and more and
more people are becoming victims to
this. It seems like criminals are
becoming very clever and innovative,
coming up with ingenious ways like never
before to break the security cover of
these payment systems. Small businesses
think that they are safe because they
think that they are very small to get
any notice from these criminals.
However, they are absolutely wrong. A
recent financial report showed that
about 72% of small businesses were
either victims of an attempt or the
payment fraud itself.
Now, the good news: there
are ways for small businesses to take
measures so that they will not be the
victim of payment fraud. The current
advancements in technology make this
less costly and easier than ever before.
There are 2 primary
reasons for a business to combat fraud:
firstly, to prevent its payment systems
from being hacked by outsiders which
causes huge financial loss for the
company and secondly, to protect its
customer’s data from getting in to
unauthorized hands. This may look like a
huge task, but when you take help from
the correct places it will be much
easier, especially for small businesses.
There are several e –
payment processing systems such as
PaySimple Solution 2.0 and the automatic
fraud prevention tactics and techniques
which help small and start up businesses
to protection their systems against any
fraud. For example, almost all the
current systems have the AVS validation
scheme for credit cards which compares
the billing address given by you during
a purchase and the billing address in
the records and the CVV2 validation
which ensures that the one who is
authorizing this transaction is in
possession of the credit card. When it
comes to eCheck, then there is the check
verification technology that tells the
merchant whether or not there are
sufficient funds in the bank account and
also determines whether the account
holder is black - listed. There are more
sophisticated systems which permit the
merchant to black – list transactions
from a particular IP or country or email
address. They also provide functions
like blocking of multiple credit cards
and so on.
One thing that small
businesses can do for the purpose of
protecting their customers’ information
is: utilize only those processing
systems which are manufactured by
companies that are PCI compliant. This
standard was invented by the MasterCard
and Visa and therefore is very reliable
in protecting any business and all its
customers. These systems makes sure that
the bank accounts and the card numbers
will be encrypted when it is stored and
the encryption policies are so robust
that it cannot be broken by anyone.
These systems are also updated
continuously. |
