The benefits of accepting credit cards are innumerable. We
have immersed ourselves in a world of platinum plastic. The reassuring feeling
of having a wad of cash in your pocket has been replaced with a plastic sliver
of magnetic circuitry few understand. What merchants do need to understand is
how to properly protect their business from credit card fraud. The luxury of
speedy transactions and automatic deposits translates into more rules and
stipulations. Having a consistent and up-to-date chargeback plan for your
business is critical. Here are some industry specific tips on how to shield
your business from credit card chargebacks.
Satellite Dishes & Dish Network Contracts
- Do
not charge for services beyond 30 days.
Subscribe to a recurring billing service.
- Obtain
an imprint with signature for the file.
This could be used for an early cancellation fee.
- Get
an extra document signed by cardholder that states they agree to pay an
early cancellation fee with their credit card.
Auto Repair & Auto Body
- Work
order should also include license number and state of license.
- Do
not leave keys under the mat for after hour pick-up unless an imprint is
first obtained.
- Write
down as many phone numbers as you can (home, work, cell, spouses cell)
- Have
cardholder sign something after the completion of the job stating
satisfaction.
- Have
cardholder sign all estimates and work orders.
- Make
sure all warranty information is on a separate form from work order and
signed.
- Do
not charge for the manufacturers’ warranty.
Auto Sales
- Sell
vehicles in “AS IS” condition and have cardholder sign attesting to this.
Chiropractors
- Do
not use credit cards when selling 1 year discounted services.
Florist
- Always
get someone to sign to prove delivery actually took place.
- Always
write down date and time of delivery.
- Give
dimensions of the arrangement before placing the order and write down on
work order.
- Obtain
full detailed information of both the recipient and the cardholder.
Mail Order/Phone Order Merchants (eBay, Amazon, etc…)
- Must
ship to billing address of credit card only.
- Obtain
an Exact Match from the issues through Address Verification Service (AVS)
for both address and zip code.
- Charge
credit card the day product is shipped.
- Obtain
delivery confirmation from the shipping company. Getting a signature is
best.
- Never
swipe any sales using the card reader.
- Make
sure processor has your Standard Industry Code (SIC) as MOTO Only.
- Get
Work Order signed through email or fax by cardholder.
- If
Software supports the 3 digit security code (CVV2) make sure you use
it.
- Do
not charge over a predetermined sale amount.
- Get
as many phone numbers as possible.
Though these tips are a good way to reduce fraud and
losses, always call your processor when in doubt about what you should do when
accepting a credit card. They are there to protect you and to make sure that
your credit card transactions are secure.
