Money For Lunch – 3 Principles That Will Help You Mitigate the Risks Associated with Accepting Payments over the Phone

3 Principles That Will Help You Mitigate the Risks Associated with Accepting Payments over the Phone

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Speed and versatility are important in the business world, especially nowadays when people have so little free time and want everything done quickly and painlessly. Instant payments via contactless technology and super-fast delivery have taken off in this atmosphere and are the kind of trends that will only grow even more.

Variety is another area that the modern consumer has come to expect. We aren’t limited to local shops anymore as the internet has opened the world up to everyone. It’s now entirely possible to live in Chicago and order products from Florida, China, Canada and Spain simultaneously.

This also means the potential for fraud has increased, as there’s no need to be physically present for these transactions. New technology can have flaws in security too, with large data breaches actually increasing over time. On the other hand criminals can use new technology to gain an upper hand and execute fraudulent transactions before anybody else becomes aware of the issue.

Let’s take a look at 3 principles that can help you manage the risk of accepting phone payments.

  1. Make Sure You’re PCI Compliant!

Being PCI compliant means following the Payment Card Industry (PCI) standards. The standards exist to keep you safe from potential fraud, though they can be a little complicated, especially when it comes to phone payments.

The ideal approach here is to use a specialist provider, such as Ivrnet. They make sure your processes are completely PCI compliant with all the nuances required to get that status for phone transactions. This lightens the load on your end and ensures there are no mistakes, as an outside provider is much more experienced and specialized in this field than you are.

  1. Check Any Information You Get Carefully

Gather as much information as possible about the customer and card being used. Cross-reference if possible. Go for the card details as required and the address, then check against the delivery details. Is the name or address different? Is the delivery address a PO Box or other suspicious address?

In any of these situations you should raise a red flag and either report the transaction or investigate further. Contacting your payment processer or the credit card provider are usually the best ways to deal with this problem. The card provider can place an alert on the card, limiting any other transactions the fraudster may be attempting.

Also be aware of suspicious looking transactions, such as large orders of high value items from a new customer. This should set alarm bells ringing instantly!

  1. Confirmation

Ask for more details during the ordering process if possible, such as contact details and a phone number. This allows you to call the customer and confirm the order. Sometimes this is a good way to catch out a fraudster, especially if they aren’t expecting your call and give away their actual name.

Another good option is to send parcels so they must be signed for in person on arrival. Fraudsters don’t like to do this as it exposes them to potential risk, so just having this policy can scare many of them away.

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