Most places of business now accept credit cards as a form of payment. This is understandable, as very few people still pay with cash or check.
However, digital transactions do open up businesses to more incidents of fraud, such as CNP fraud. It is important that business owners arm themselves with information to prevent this.
Friendly fraud is a real problem for many business owners, and it is a complex issue that should be explored. Learn more about friendly fraud and how to prevent it.
What Is Friendly Fraud?
Many business owners do not know what friendly fraud is until it happens to them. With this type of fraud, a person comes into your store and makes a legitimate purchase with a credit card.
Then, the person turns around and tells the credit card company that the charge is fraudulent. In many cases, the credit card company sides with the consumer, and you are left with a fine.
This can greatly affect a business’ bottom line, and unfortunately, this type of fraud is growing in popularity.
Who Does It Affect?
Small business owners are often hit the hardest by this type of fraud. They may not have resources in place that they should such as a chargeback company monitoring for this type of fraud.
Most of the time, this is at no fault of the business owner. He or she simply may not be aware that this is a necessary service for businesses.
Because small businesses already struggle at times, any type of fraud can be extremely difficult to overcome.
How Can I Prevent It?
You may feel powerless as a business owner in preventing fraud. After all, you cannot control the actions of other people.
While this may be true, you can arm yourself with some resources and tools that will make you less vulnerable to this type of attack.
There are companies that help you fight this type of fraud, and it can be worth looking into their services. When it comes to any type of fraud, prevention is much easier than the cleanup after the fact.
As a business owner, you are likely concerned about protecting the assets that you have worked so hard to earn.
While it can be scary to think that customers can commit fraud against your business, it is important to remember why you are in business in the first place: To serve the clients who are truly grateful for the services you provide.