Service that accepts payments with credit cards has to pay the highest possible attention to security issues. The scam occurs in this sphere very often and may lead to unpleasant financial losses and depriving of your customers' trust. Look carefully through possible Merchant Fraud that occurs in Europe and in the USA and discover the best ways for protection.
Merchant Fraud: Hidden-Fee Scams
The unreliable provider is always lacking in transparency. He proposes, for example, low discount rates and then quietly adds hidden fees or unknown charges. They are gathered by the processing bank and the merchant realizes them only when the statements arrive. The service provider makes a fortune and an owner of the business only loses money.
To avoid such risk remember to ask for a total price and all charges including bank fees. Also carefully read through the contract and do not believe in the unreasonably low rates. Remember that the free cheese is found only in a mousetrap
Merchant Fraud: Fraudulent Scams
Scam of this type occurs when an entity is established that is totally fake. It attracts attention due to affordable or even free merchant services. Then you'll face a high initial fee, but after the payment, the scammers stop responding to calls and emails and just disappear.
Therefore, be careful while choosing the provider of merchant services. Check the available reviews and information about the company including the years of experience.
Merchant Fraud: Identity Theft
In the beginning, fraudsters are not interested in money laundering, instead, they want to get your personal information. Lately utilizing any sensitive data, they can steal the money and make other harmful actions.
Online companies should be carefully checked. You can make a call to the bank to ensure the reliability of the provider or use a service like covery.ai in order to identify the possible risk.
Backdoor Scams
In this case, fraudsters edit payment gateways and allow access to third parties via a backdoor. After this step, they can access all personal and financial information, and even redirect payments. The anti-fraud tool is really powerful and should be prevented by a reliable security service. For example, Covery performs website scans on a daily basis to ensure your protection.
Finally, stay alert while choosing the merchant provider, look for protection and guarantee of your safety. In most cases, money laundering and other frauds appear due to the lack of knowledge about them and insufficient protection. Therefore, think twice before starting work with a new provider and check all the necessary information beforehand.
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