How Retailers Can Avoid Credit Card Fraud at the Sales Counter

Fraud involving the use of credit card and banking terminals in retail businesses is on the rise. Often worse than customer theft, retail banking terminal fraud can harm the business and the customer who has had a credit card stolen.

Sometimes, depending on business practices and processes in place, the business can face a hefty financial loss as a result of the fraud.

In a few seconds the fraud against a retail business can be complete and the criminal on their way.

Here are some simple and practical steps any retailer can take to protect against fraud using credit card and banking terminals at the sales counter in a retail business:

  1. Understand the risk in your local area. Talk to police and other authorities to determine if you are in a high risk area.
  2. Only allow credit and debit card transactions where the customer has the physical card. Often, people committing fraud will have a story about why they do not have the card with them.
  3. If you are unsure of a cardholder, ask for photo ID, say it is store policy. This is common in the now and perfectly legal to ask for.
  4. Never allow a customer to enter any numbers or touch any buttons on your credit card processing or banking terminal except for entering their personal identification number.
  5. Do not permit the loading of credit to a prepaid debit card from a credit card.
  6. Get all your employees together and warn them, run them through the proper handling of eftpos transactions.
  7. Bring in a specialist in retail fraud using credit cards to provide advice to your team on how to spot the fraud and how to handle the person involved.
  8. Install a height guide on the inside of your exit door so that you can accurately report to the police the height of the person committing a crime.
  9. Install a camera system with a monitoring screen at the counter and eye level so that when any customer looks at your sales team they see themselves on the camera.
  10. Check your insurance. Ask your insurance company what processes and policies are necessary for you to be adequately protected against customer fraud using credit cards at the counter.
  11. Have a clearly written and understood policy on handling fraud and theft situations. It is important that employees know what is expected of them and have had an opportunity to discuss this with you.

Too often, fraud at the counter is completed long before it is detected. Careful planning and good training will help ensure that the business is as protected as can be. It all comes down to professional focused management.

As well as protecting the business from financial loss, good processes working on fraud at the counter also educate your employees about the business commitment to honesty and discipline toward business rules.


Post time: 02-27-2017