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6 Small Business Credit Card Processing Security Tips

Worried about fraud involved with small business credit card processing? You have every right to be! But don't let this stop you from accepting CC payments.

5 min read

The scariest situation for a business to be in is a data breach. Not only does this impact your finances, but it affects your reputation. Bouncing back after this can be difficult, especially when you're a local, small business.

Unfortunately, it's a problem that any business that accepts credit cards can face. So to help minimize the risk in your company, you can use the following tips for securing small business credit card processing.

But first, let's take a glimpse back at some of the biggest data breaches of all time.

The Largest Credit Card Data Breaches

Credit card data breaches don't discriminate. You'll find that even the largest of companies can be targeted in a data breach.

Just look at what happened to Capital One Financial Corp (the 5th biggest credit card issues in America). Most recently, in July 2019, a whopping 106 million customers and applicants had their personal data accessed.

Then in 2017, Equifax (the credit bureau) was involved in a breach that lead to 143 million customers having their data exposed. This included 209,000 credit card details.

So what can you do to ensure your small business credit card processing doesn't land in the same boat?

Let's take a look at some precautions you can take.

1. Choose a PCI-Compliant Small Business Credit Card Processing Service

Credit cards are processed using payment processors. These processors are required to comply with payment card industry (PCI) regulations. This is what ensures the proper handling and encryption of credit card data.

So the best way to prevent hackers from stealing your customers' data is to go with a small business credit card processing provider that's PCI-compliant.

2. Think Twice About Storing Credit Card Details

Is there a reason you should store customers' credit card details? If not, then you should destroy the data right away. Or better yet, don't collect the data at all.

When you're using a small business credit card processing service like GoSite, you don't have to worry about data storage. All payments are processed through the portal, so there are no details to collect or store.

3. Learn About the Different Types of Credit Card Fraud

Educating yourself about credit card fraud puts you in the position to identify it at its infancy. The sooner you can spot a risk, the quicker you can eradicate it.

Here's a quick look at the different types:

  • Over payment scam: This is when a customer intentionally overpays you and then asks for a refund.
  • Malware: This can come in through an email, download, or external hard drive with the virus. These can track activities and access files.
  • Ransomware: This is another malicious software that can stop you from accessing your computer until you make a payment.
  • Stolen credit card: You may come across customers using a stolen card to purchase your product or service.
  • Electronic credit card skimmer: When you're using credit card readers, you run the risk of someone using skimmer to stream card details from customers. You can eliminate this issue by using a tool like GoSite, which requires no physical hardware.
  • Fake cards: Yes, some thieves know how to forge cards with a magnetic strip, chip, and numbers. However, there's no real account attached to it.

Keeping an eye out for these red flags will make small business credit card processing safer.

4. Immediately Report Signs of Credit Card Fraud

Even if you do everything possible to prevent fraud, there's no guaranteed way to avoid it. So when something does happen, it's essential to report it immediately.

But who do you notify?

To start, you need to notify the small business credit card processing service you're using. Then depending on the type of fraud, you may want to warn the credit card owner so they can notify their credit card company.

5. Ensure Your Small Business Credit Card Processing is Encrypted

This is an easy step to implement since most payment processors are required by PCI to use encryption. For instance, GoSite uses point-to-point encryption.

Once you sign up, you will automatically receive upgrades and integrations. Its features include small business credit card processing, transaction management, and sending receipts.

6. Take Extra Precautions to Secure Online Payments

You can never be too cautious about small business credit card processing. With nefarious people out there, you have to take extra precautions to safeguard your customers, as well as your business.

Here are red flags to watch for:

  • Orders containing the same item (especially if it doesn't make sense -- i.e., 10 pairs of the same shoes)
  • Multiple purchases on the same day
  • Overnight and other forms of rush delivery
  • International orders that you usually don't have customers in
  • Orders paid for with different cards but shipped to the same address
  • Orders that fail address and security code verification (3 digits on the back of the card)

It's also worth noting that 45% of credit card fraud is done for card-not-present transactions. So be vigilant!

Secure Your Small Business Credit Card Processing

The first step to securing your small business credit card processing is to find the right payment tool. We can't stress enough the importance of having a processor that's PCI-compliant and encrypted.

The GoSite payment tool just so happens to fit both criteria.

Interested in learning more about online payment processing before you commit? Then download our free fact sheet on everything to do with payment processing!

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