While EMV chip cards enhance credit card security, there has been an increased focus on protecting businesses from potential credit card scams, particularly those involving damaged chips that necessitate manual entry of credit card information due to the chip not being functional. Subsequently, businesses face the risk of losing monetary claims in the event of credit card disputes by customers.
It is imperative for businesses to establish comprehensive policies aimed at mitigating these risks. Here are several options to think about:
Prohibit manual entry transactions: Consider disabling the capability for manual card entry on integrated credit card terminals, thereby reducing the likelihood of unauthorized transactions.
Implement risk limitations: Set a maximum acceptable threshold for manually processed transactions to minimize exposure to potential risks. Construct clear policies outlining the maximum amount authorized for manual transactions, providing guidance to employees who handle such transactions.
Request alternative payment methods: Encourage employees to ask customers for an alternate form of payment if the chip on the credit card is non-functional in the card reader.
Vigilance in monitoring disputes: Remain vigilant for any notifications of charge disputes, as repeat offenses may occur. In such cases, exercise caution and consider requiring the functional use of the chip or an alternative payment method for customers who have disputed charges in the past.
By implementing these strategies, businesses can fortify their defenses against credit card scams and mitigate the associated financial risks.
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