Credit Card Fraud: How to Protect Your Business

More people than ever are shopping online, using their credit cards to buy everything from business and consumer products and services.

That's great news for small and big ecommerce sites alike. More people using their credit cards to buy more gifts, should mean more profits for most online businesses if they aren't victims of credit card fraud.

Credit card fraud, unfortunately, can quickly turn a prosperous holiday season into a nightmare for a small business. The owner of a small mail order business located in California had to borrow from friends and family to make good on $14,000 worth of fraudulent charges made on stolen cards one year. The following year, the owner implemented procedures to screen out possible fraudulent orders and refused to ship $25,000 in orders that seemed suspicious.

Spotting fraudulent orders

Fortunately, if you sell online or over the telephone there are a number of steps you can take to minimize the occurrence of fraud.

First and foremost, be on the look out for suspicious sales. These include:

*Unusually large orders placed through the Internet without any contact from the customer.

*Rush orders for large quantities or high-priced goods. Crooks may ask to have an order shipped overnight so they know exactly what day the order will arrive and they can be waiting to pick it up.

*Missing information, or information the customer refuses to give such as a day-time phone number.

*Orders that are shipped to a different address than the billing address.

*Orders from foreign countries

*Orders on US cards shipped to foreign countries

*Billing addresses that don't match the information on file with the credit card company.

By themselves, no one of these things are a sure sign that a credit card is stolen, but when several factors are present (say, your average ticket amount is $75 and you see an rush order for $5,000 being shipped to a different address than the address of the credit card holder) it's prudent to be suspicious and investigate the sale.

Even if there's only one factor that doesn't pass your "sniff" test, it's useful to err on the cautious side.

by Janet Attard, Founder of the award-winning "Business Know How" small businessweb site and information resource.

What should you look for in a Credit Card Processing company?

Telling your customer that you cannot accept their form of payment is a sale killer. With a credit card processing service, you can accept all forms of payment, from anywhere.

A versatile, reliable credit card processing service can help your business increase sales by enabling you to accept all forms of payment from anywhere at anytime.

So what should you look for in a credit card processing company?

Low Start-Up Costs - Credit card processing companies shouldn't charge you too much to set up a merchant account and a payment gateway.

Account Setup Time - A competent service will expedite your application and get you in business as quickly as possible, some can approve the application and set-up an account within a days time.

Stellar Customer Service - Accessible customer service answers inquires 24 hours a day, seven days a week. The service should offer many avenues of contact including telephone, email or instant messaging and help should be quick to respond and provide useful information.

Internet Based Features - Most companies offer more than one type of virtual terminal as well as an online merchant account and payment gateway or specialized software.

With a good credit card processing service, you can increase your sales and flexibility and give your customers many payment options.

Common Credit Card Processing Questions

1. What is a Merchant Service Provider?
A Merchant Service Provider allows businesses to accept and process credit card transactions. Marathon Solutions is a merchant service provider and we assist merchants by setting them up to accept and process credit cards, providing the necessary equipment and training, and superior customer service along the way.

2. What credit cards can I accept if I use a service like Marathon?
With Marathon Processing you have the ability to accept Visa®, MasterCard®, American Express®, Discover®, Diners Club®, JCB® and Fleet cards.

3. Can I accept credit cards on my computer or online?
You can process your credit card transactions either with software on your computer or through a virtual terminal or an online payment gateway. When you speak with a Marathon representative they can help you decide what the best option for your business is.

4. Is there a transaction fee and are your prices competitive?
Yes, all processors charge a fee for processing transactions; however Marathon Solutions is a wholesaler provider for Visa and MasterCard and has the most competitive rates for your business. Speak to one of our representatives and they will customize a program to meet your businesses needs.

5. Can I purchase or rent equipment?
Yes, you can purchase equipment from Marathon Solutions. We have extremely competitive rates on all of our equipment. Marathon does not offer monthly equipment leases since we do not believe it is in the best interest for your business. With an equipment lease, merchants end up spending thousands of dollars for a terminal when they could have purchased it for a fraction of the cost.

6. What is the process for me to start accepting credit cards?
The first step is to talk to one of Marathon’s representatives so they can understand your business and custom tailor a program to fit your needs. They will then fill out an application with your assistance. Once the application has been signed and received with a copy of a voided business check, we can have you set up to accept credit cards in as little as 2-5 business days.

7. How soon will the money be in my bank after accepting a credit card?
The monies from your Visa® and MasterCard® credit and debit card transactions are deposited through ACH into your bank account within 48 hours.

8. How do I know what my monthly fees and processing transactions total each month?
We mail out your monthly statements on the 3rd of each month. Our detailed statements will break down your fees and your processing totals by day and by card type.

9. What kind of businesses does Marathon Processing work with?
We serve industries such as: Retail, Manufacturing, E-Commerce, Business to Business, Municipalities, Community Banks, and Restaurants. There are a few industries we cannot work with including: airlines, gambling, anything pornography related, telemarketing, and payday loan stores.

10. Who will be my point of contact for support and to help me establish my processing account?
The Sales Representative who sets up your account will be your same point of contact for as long as you process with Marathon Solutions, you can call them at any time if you have questions or concerns. In addition to the Sales Representative, you will also be assigned a Merchant Specialist who will be available to you to answer any transaction or batch questions and terminal or software troubleshooting you may encounter.