Helpful Tips for Businesses to Prevent Credit Card Fraud

• Do not allow a transaction to be authorized unless the customer gives you a valid expiration date for the credit card.



• Follow up all card not present transactions with an email to the customers account or with a telephone call.
  


• Red flags for fraudulent purchases include: bulk transactions, first time shoppers, big ticket items are being purchased, rush delivery, shipping is requested to a different address than the customer or the shipping address is listed as an overseas address, large purchases are being made with numerous credit cards and shipped to a single address, separate purchases are being made but they are coming from a single Internet Protocol address.
  


• The customer should be required to give you the three-digit number on the back of the card. This will ensure that the purchaser has the card in his or her possession.

Helpful Tips for Consumers to Prevent Credit Card Fraud

• You should save all of your credit card receipts. Each month when your bill comes in the mail you should go over it thoroughly. Check to see if there have been any purchases made that you did not approve. If you find any suspicious purchases, you should contact your credit card company immediately.
  
  
• Keep in mind that a criminal does not have to be in possession of your card to make fraudulent purchases. A criminal can obtain your credit card information and make card-not-present transactions by just knowing your credit card number. You should always shred or burn your credit card statements. To protect yourself even further, you should always keep your bills and credit cards in a safe place away from the eyes of anyone who enters your home.
  
  
• Be patient when you are making card not present transactions. Most businesses are now requiring that you give additional information when you make purchases to ensure that you are indeed the cardholder.

Consequences From Chargebacks

There are several consequences a business can face for receiving too many chargebacks:

• Lost Product
• Chargeback Fees
• Fined by Card Associations
• Placed on Association Monitoring Program
• Loss of Merchant Account
• Terminated Merchant File

How many chargebacks are too many?

Visa®: more than 100 chargebacks with chargebacks in excess of 1% of total transactions.

MasterCard®: more than 15 chargebacks with chargebacks in excess of 1% of total transactions.

What are the Fees for Chargebacks?

A chargeback handling fee is associated with each chargeback. This is a processing fee for handling the chargeback and/or subsequent re-presentment. The fee is not a penalty or a declaration that a merchant is right or wrong.

Preventing Chargebacks

Most chargeback situations arise at the point of transaction—at the time the transaction is completed—and most online payment fraud can be prevented with a little training and prevention methods.

Chargebacks

A chargeback is a procedure whereby a card holder or the card holder’s bank disputes transactions put onto a credit card.

What is the Process of a Chargeback?

The merchant's account is debited along with any contractual chargeback fee(s) and the merchant must provide proof that the transaction is valid and satisfactory to the rules and regulations of Visa® and MasterCard® to get money back.

1. Bank or processor receives a chargeback from the issuing bank.
   
2. Bank or processor mails notification of chargeback to the merchant, and the amount of the chargeback plus a handling fee (deducted from merchant’s settlement account). If more documentation is required to clarify the chargeback, then it is sought from the cardholder’s bank.
   
3. If a merchant feels that a chargeback is invalid, then the merchant may send his rebuttal and supporting documentation, in a timely manner. Typically the merchant is required to respond within 10 days of the receipt of the chargeback notification.
   
4. If the merchant has a valid rebuttal, then the Bank or processor re-presents the item to the issuing bank and reclaims the funds for the merchant.

Credit Card Processing Rates and Fees

If you have a business and you are thinking of accepting credit cards for payment, you may have some questions about the cost and breakdown of credit card processing. You may be confused by the fees and credit card processing rates, but do not let that stop you from accepting credit cards. By accepting credit cards, you give your customers an easy, convenient way to pay, but it also will help you increase sales.

The first step in the process it to understand the merchant accounts. There are two different types of merchant accounts with up to 7 subcategories. It is imperative that you sign up for the correct merchant account to get the correct credit card processing rates.

If you are a retail merchant, you may qualify for the retail merchant rates. This account offers the lowest discount credit card processing rates. They also offer low cost fees, but you must have a business that swipes 80% or more of the credit card transactions through a terminal.

If you are a mail order merchant, you will not be swiping actual credit cards, but processing them over the phone or though the mail. The Mail Order Merchant Account requires that you do most of the credit card processing through a keypad of a credit card terminal. The mail order rates can be as low as 1.89%. If you have an Internet business, be sure to check out the Internet Merchant Account. That is the account for online business owners and also offers credit card processing rates as low as 1.89%. If for whatever reason, you take credit card numbers, but process them later, you will need the Store and Forward Merchant Account.

With all the different types of merchant accounts available, it is necessary for you to find out which one is the proper one to use to make sure you get low cost fees and low credit card processing rates.

Credit Card Processing for Gun and Firearms Dealers

In the past, several credit card processing companies have rejected federally licensed firearms retailers, distributors and manufacturers and refused to process credit card transactions. Some processing companies have even shut off firearm seller’s merchant accounts and held their money. The only way, that they will approve a gun or firearms dealer for credit card processing is if it is for face to face firearms sales.

BankCard Central still gives gun dealers and firearms dealers a chance to accept credit cards and sell their firearms thru their ecommerce website, or online store. BankCard Central has put together a website full of resources for gun and firearms dealers to help the process of accepting credit cards online or in your retail store go as smooth as possible. You will find documentation requirements, website requirements, FAQ’s and much more to help you sell your guns and firearms online today.

Start accepting credit cards today! Find out more about Gun Dealer Credit Card Processing.

Conficker Worm Targets Microsoft Systems

From Microsoft

"Win32/Conficker is a worm that infects other computers across a network by exploiting a vulnerability in the Windows Server service (SVCHOST.EXE). If the vulnerability is successfully exploited, it could allow remote code execution when file sharing is enabled. Depending on the specific variant, it may also spread via removable drives and by exploiting weak passwords. It disables several important system services and security products and downloads arbitrary files.

Microsoft strongly recommends that users apply the update referred to in Security Bulletin MS08-067 immediately.

Microsoft also recommends that users ensure that their network passwords are strong to prevent this worm from spreading via weak administrator passwords. More information is available here."

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