The benefits of accepting credit cards are innumerable. We have immersed ourselves in a world of platinum plastic. The reassuring feeling of having a wad of cash in your pocket has been replaced with a plastic sliver of magnetic circuitry few understand. What merchants do need to understand is how to properly protect their business from credit card fraud. The luxury of speedy transactions and automatic deposits translates into more rules and stipulations. Having a consistent and up-to-date chargeback plan for your business is critical. Here are some industry specific tips on how to shield your business from credit card chargebacks.
Satellite Dishes & Dish Network Contracts
- Do not charge for services beyond 30 days. Subscribe to a recurring billing service.
- Obtain an imprint with signature for the file. This could be used for an early cancellation fee.
- Get an extra document signed by cardholder that states they agree to pay an early cancellation fee with their credit card.
Auto Repair & Auto Body
- Work order should also include license number and state of license.
- Do not leave keys under the mat for after hour pick-up unless an imprint is first obtained.
- Write down as many phone numbers as you can (home, work, cell, spouses cell)
- Have cardholder sign something after the completion of the job stating satisfaction.
- Have cardholder sign all estimates and work orders.
- Make sure all warranty information is on a separate form from work order and signed.
- Do not charge for the manufacturers’ warranty.
Auto Sales
- Sell vehicles in “AS IS” condition and have cardholder sign attesting to this.
Chiropractors
- Do not use credit cards when selling 1 year discounted services.
Florist
- Always get someone to sign to prove delivery actually took place.
- Always write down date and time of delivery.
- Give dimensions of the arrangement before placing the order and write down on work order.
- Obtain full detailed information of both the recipient and the cardholder.
Mail Order/Phone Order Merchants (eBay, Amazon, etc…)
- Must ship to billing address of credit card only.
- Obtain an Exact Match from the issues through Address Verification Service (AVS) for both address and zip code.
- Charge credit card the day product is shipped.
- Obtain delivery confirmation from the shipping company. Getting a signature is best.
- Never swipe any sales using the card reader.
- Make sure processor has your Standard Industry Code (SIC) as MOTO Only.
- Get Work Order signed through email or fax by cardholder.
- If Software supports the 3 digit security code (CVV2) make sure you use it.
- Do not charge over a predetermined sale amount.
- Get as many phone numbers as possible.
Though these tips are a good way to reduce fraud and losses, always call your processor when in doubt about what you should do when accepting a credit card. They are there to protect you and to make sure that your credit card transactions are secure.
