We understand that the intricacies of payment acceptance can sometimes be complex, and we are here to support you in any way we can. Should you have questions about how our software interfaces with the payment processor or require guidance on enhancing your payment validation processes, don't hesitate to contact us. We are dedicated to assisting you in maintaining a secure and efficient payment environment.
There are two types of card transactions:
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Card-Present: When a customer presents a card in person, and you swipe, dip, or tap the card to process it with a credit card reader.
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Card-Not-Present: When the credit card number is entered manually. Examples include online purchases, orders over the phone, or charging a customer's card on file.
You can prevent fraud differently based on the transaction type.
Always try to swipe, dip, or tap a card during the point of sale. A card-present transaction typically has lower fees and is deemed less risky. Try to limit manual entries (typed-in) transactions as much as possible.
And always make sure to follow the proper procedures when processing a transaction. If it's approved, ask the customer to sign the sales receipt or your device. If it's declined, return the customer's card and kindly ask for a different form of payment or another credit card.
Here are some additional practices to help reduce the likelihood of fraudulent transactions during in-store purchases:
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Validate the physical card: Make sure it has not been altered in any way.
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Ask for customer identification: Does the name on the card match the customer's profile or ID?
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Make sure the customer receives a delivery item in a timely fashion. Try and ship any products purchased in-house or online as soon as possible to avoid customer frustration.
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If a suspicious customer wants to pay for an item with a credit card that's written down, it may be best to ask for another payment method.
To prevent chargebacks, it's important to ensure that the customer has authorized any and all transactions made with their credit card. However, even with your best efforts, there will be a time when a customer charges back a transaction. See our guide on disputing chargebacks to learn more.
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Clearly inform customers about the return, refund, and cancellation policies at the time of sale. Vagaro does this automatically for online bookings when you write your policies.
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For an extra layer of protection, require a form that requires a customer signature. If a customer disputes the transaction, you can use this form as evidence.
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Immediately respond to requests to cancel recurring payments.
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Save any receipts and documentation of the purchase, which can later be used as evidence when you dispute the chargeback.
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Ensure that the Doing Business As (DBA) name listed on your merchant account is clear to the customer. You chose your DBA when you first signed up for credit card processing, and it will display on your customer's bank statement. If it's not clear to the customer, tell them what to expect when they view their bank statements.
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Charge a deposit instead of a no-show fee. If you charge a no-show fee, customers can dispute it and say they didn't authorize the transaction. Deposits are taken before the appointment and are like a written contract with the customer. If they don't show up to their appointment, you can keep the deposit.
While our software can offer tools and features to help identify potentially fraudulent transactions, the responsibility to validate the authenticity of transactions ultimately falls on your shoulders, including verifying cardholder information and ensuring transactions comply with your business's policies.
When identifying potential warning signs for fraudulent practices, be aware of customers who:
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Use gibberish for their customer profile name and email. Check your Transaction List report.
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Purchase a large number of items, disregarding size, style, color, or price.
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Purchase a lot of items before the store closes.
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Purchase many of the same items multiple times.
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Request an overnight or rush shipping of delivery items.
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Are first-time shoppers.
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Make in-store purchases using very similar card numbers.
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Use gift cards that have the same purchaser and recipient.
Comments
2 comments
How many days does it take for the money to return to my account after I win the case and the status changes to won?
Hi Ruth, the funds should be returned to your account by the next deposit date. Please see our batch schedule for more information.
Thanks,
Jamie
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