3 Ways Retailers Can Prevent Fraudulent Purchases

Credit cards are one of the most popular forms of payments nowadays, especially with seven in 10 Americans owning at least one credit card. And although credit cards offer convenience, the information stored on the card can be stolen. This is why it’s important for retailers to do whatever they can to keep their customers’ information safe. So let’s take a look at a few easy ways retailers can help lower the risk of credit card theft.

Know the common fraud tactics: First, retailers should take initiative to familiarize themselves with the common credit card fraud and theft tactics. Being familiar with these tactics will help store employees be more aware and ready to stop credit card theft. Some common tactics used today include card skimming, refund fraud, and identity theft. Knowing these tactics, how they work, and how they can be prevented will help keep customers safe.

Invest in the right card readers: One of the most important steps retailers can take is to invest in smart credit card readers. If stores have outdated, unsecured card readers, they’re going to be easier to use with a fake or stolen card. So when retailers use modern magnetic card readers, they’re going to have a better chance of catching a fake or stolen credit card. Using the right smart credit card readers can go a long way when it comes to preventing fraudulent purchases.

Utilize ID scanners: If a store often has large purchases, it may be common to ask to see an ID before the purchase is complete. But going one step further and using ID readers can make a big difference. It’s one thing for someone to make a fake ID to match the name on the credit card they stole. However, ID readers can quickly tell if an ID is fake. So when someone tries to make a big purchase with a stolen or fake credit card and their fake ID is scanned, the purchase can be stopped.

Unfortunately, not all fraudulent purchases can be prevented. But considering a few of these tips can help your store employees be more prepared for the use of fake or stolen cards.

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