Tips For Restaurant Owners To Prevent Credit Card Fraud  

Credit card fraud has been growing exponentially in the United States. Each year, businesses lose billions of dollars due to it fraud and even people who are not victims are affected by this fraud.

Businesses pass on the cost of credit card fraud to their customers in the form of higher prices, higher interest rates and higher fees.

As per the Federal Trade Commission, credit card fraud is the most common type of identity fraud present today.

When it comes to restaurants, the fraud can be perpetrated in two ways. First, the identity theft can occur in restaurants when a customer pays his bill using a credit card. According to the Federal Trade Commission, even if one card is comprised during a transaction, the restaurant has the onus of the losses. The second way credit card fraud occurs in restaurants is when a customer uses a stolen card to pay the bill.

Here are some tips for restaurant owners to prevent credit card fraud in their restaurants:

  • One way of reducing or preventing credit card fraud is to invest in handheld devices so that credit card payments can be taken at the table itself. This will reduce the chances of identity theft.
  • Restaurant owners should ensure that staff are well paid as this will reduce the urge and temptation to get into fraud and other scams.
  • Train restaurant staff never to accept cards that are broken, damaged or cut.
  • When the customer is signing the sales receipt, the staff should compare the signature with the one present on the card.
  • Staff should not hesitate to ask for identification to compare photos or signatures.
  • Restaurant staff should be trained to look for fake holograms that are made from aluminum foil.
  • They should also be trained to check the credit card for misspellings, alterations in signatures.
  • Staff should not accept cards that appear discolored, painted, or have flattened or re-stamped numbers.

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Tips For Restaurant Owners To Prevent Credit Card Fraud

What-Are-The-Penalties-Of-Credit-Card-Fraud      Credit card fraud takes place when a person uses someone else's card to make a purchase or uses the card with the intent of defrauding a business. The most common types of credit card fraud include counterfeiting credit cards, using stolen or lost cards and getting credit cards through mail by using illegal means. It is estimated that more than half of the credit card frauds taking place actually happen online. More..




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