High-risk merchants are susceptible to more fraud than traditional businesses that accept credit cards online. They’re typically small businesses selling things related to tobacco, CBD, or electronics. In addition, they often lack the resources needed to protect themselves against fraud, so they turn to high-risk merchant services providers to help them process credit card transactions safely.
What Is Fraud Prevention?
Fraud prevention can be defined as “the process of identifying, investigating, and deterring or responding to fraudulent activity.” It is a part of risk management in business and government. Fraud prevention techniques include:
- Prevention of fraud – the identification of potential risks that could lead to fraud;
- Detection of fraud – the detection of actual instances of fraud;
- Response to fraud – the investigation of an instance of fraud and the response to any resulting legal action
The most effective fraud prevention methods involve both prevention and detection.
How To Protect Your Business?
Many high-risk merchant providers offer services to help merchants avoid fraudulent charges. These include monitoring transaction activity, flagging suspicious patterns, providing identity verification, and helping merchants detect and prevent fraud. In addition to using software to monitor transaction activity.
What To Do If You Are A Victim of Fraud
If fraud does occur, a provider may notify the merchant and recommend steps to stop future fraud. Some providers may even block certain types of transactions based on the buyer’s characteristics.
Other providers may require customers to verify their identities by requesting a copy of a government-issued ID or asking for a phone number associated with the account.
Some providers may even help merchants create fraud alerts, alerting credit card companies to potentially fraudulent activity. Merchants pay for these services out of pocket because they don’t want to lose money due to fraud.
How To Choose A High-Risk Merchant Provider
When choosing a provider, consider the following six factors:
How much will it cost per month to use the service? Does it include setup fees? What happens if the merchant stops using the service? Is there a cancellation fee?
Are there extra features available only to subscribers? Do they provide tools to help merchants identify and prevent fraud?
Who can answer questions regarding the service? Will the provider be able to resolve problems quickly? Can you call the company directly?
How secure is the system? Is there a firewall between the provider and the merchant? Is data encrypted during transmission?
If you are looking for a trusted high-risk merchant provider, contact My Payment Solutions USA. They provide the best payment solutions for small and large businesses and offer cashless ATM and more.