Many businesses are running customer transactions remotely over the phone, internet, or email, all of which are considered card-not-present transactions. This type of transaction traditionally is considered riskier than a card present transaction because it’s harder to verify the cardholder’s identity, increasing the likelihood of fraud.
Thanks to improvements in technology, security has drastically improved, and card-not-present transactions are not only easier to take, but also imperative during our current business environment— giving you the ability to sell your products or services outside your place of business.
To help protect yourself from fraud and keep your customers’ information safe, here are four tips from our new business partner SpotOn, Inc., on running card-not-present transactions.
- Collecting Data – When collecting customer data make sure you only collect the required information including: their name shown on the card, card number, card expiration date and customer’s contact information. Input this information directly into your payment terminal rather that writing it down, to eliminate the risk from someone stealing the information from your place of business.
- Authorizing Payment – Modern cards have a security value, also know as CVV (Card Verification Value). 3-or 4-digit numbers printed on the back of the card to increase security. Their purpose is to increase the customer’s probability of being in physical possession of their card during the authorization process. Enter the information into your payment terminal. However, take special care not to write down or store the card security value in any way, since storing the codes could result in fines.
- Avoiding Chargebacks – There are multiple reasons why chargebacks can happen. One of the most common is for “Unauthorized Use.” This could indicate fraud. “Authorization Not Obtained” is another type of chargeback. Proper exception handling by your processor can help eliminate this type of chargeback. Finally, the “Recurring Transactions: chargebacks happens when a consumer believes they have been billed after cancelling. Using explicit billing descriptors will help you avoid them. Always process refunds as quickly as possible. Ensure you are displaying your contact information and providing easily accessible support on your website, invoice and receipts.
- Protecting Yourself – Your business is essential when it comes to taking card-not-present payments. Luckily new payment technology is highly affordable and helps reduce the likelihood of a data breach, whether using a full POS system, a stand-along payment terminal, or a virtual terminal. The Payment Card Industry Data Security Standard (PCI) was specifically developed to safeguard cardholders’ personal information while in the possession or use of merchants, payment processors, and other organizations.
SpotOn, Inc., will ensure your payment terminal is PCI compliant at no cost to you, and they take care that the payment software and hardware both follow the latest PCI standards. SpotOn will do everything in the most transparent and upfront way possible, without long-term commitments, extra fees, or hidden charges.
Please visit: SpotOn, Inc., for more information.