(Newswire.net — October 1, 2015) –There were 342 data breaches exposing over 9 million private records through June 10, 2014, according to Identity Theft Resource Center. That soaring figure represents a 17 percent increase over the same time period the year prior. In addition, a report from The Economist explains that global payment-card fraud losses totaled $11.3 billion in 2012.
In an age where credit card fraud and data breaches dominate the headlines, it’s more important than ever to protect your business against fraud as well as your customer’s information. Without a plan to help prevent fraud and lower your business’ liability, your financial longevity and success is at stake. Here’s how you get started.
EMV Credit Card Reader
EMV is a global standard for credit and debit payment cards on chip card technology. Stay diligent and know the changing laws of vendor liability and EMV credit card processors. As of October 1, 2015, vendors that fail to update their payment processors to accept chip-enabled EMV debit and credit cards are subject to devastating liabilities. Sign on with a compliant payment processor, like Sage One Payment Solutions to process your debit and credit card orders securely. In addition to being legally compliant to the latest standards, Sage One also offers store, online and mobile payment options.
Check Customer IDs
It may seem like an obvious step in protecting your business and your customers, but checking customer IDs is essential to credit card safety for both parties. And it’s not always a stranger who swiped your card and tries to use it at your establishment. Often a relative, teenager or someone connected to the customer is “borrowing” the card without telling them in advance. This scenario may seem better than a sophisticated criminal waltzing into your business, but it could be worse. Once the card holder realizes what happened, they will ask the credit card company for a charge-back or demand a refund because you didn’t perform due diligence.
Use an AVS System
If you’re an online retailer or take orders by phone, you need an Address Verification Service (AVS). A service like Trillium Software confirms the address of the person’s card and then confirms the address with the bank that issued the credit or debit card. It then returns the data to confirm whether or not the figures match. As the vendor, you’re only responsible for entering the numerical part of the address and zip code. The whole process usually takes a few seconds before you receive a response from your AVS.
Know What Information Is Stored
Do you know what types of customer details you store and how? Whether you’re electronically storing social security numbers, banking information or personal addresses, you need to know what you’re facing before a data breach occurs. Not being able to tell your customers what information may be compromised only escalates the issue and potentially increases your liability. Third- and fourth-party breaches are increasingly common and Prevalent’s platform helps mitigate those risks.
Be Ready to React
Create a plan for dealing with a data breach or credit card fraud before it happens. Know who is going to handle the issue, what legal team will get involved and how to audit the damage. Next, brush up on your local laws and know what you’re up against. Even after a data breach, you may not be liable for damages. Depending on your state laws, some require the customer to bring a claim of damages from a data breach. Many customers aren’t affected during a breach or the issue is quickly resolved.
These are just a few steps you should take to protect your business from credit card fraud and data breaches. Above all, be cautious and be prepared in case something should happen.