Since advances in payment processing technology led to the boom in credit card use in the 1980s, fraud has been a problem for consumers and businesses alike. There are several ways that credit card theft can occur, but the two that occur most frequently are either internal payment system hacking or on-site credit card skimming. To avoid paying for erroneous payments, business owners nowadays need to learn how to prevent credit card theft.
The unauthorized use of a credit card is referred to as credit card fraud. Although cardholders can frequently escape financial responsibility for fraudulent purchases, it can be quite expensive for businesses, particularly those that accept in-person payments using outdated card readers. In general, if a firm processes a transaction without using an EMV-enabled card reader, it bears the responsibility for fraud.
In order to shield customers from fraudulent charges, chargebacks were developed. They take place when a cardholder challenges specific charges that were made to their account. If a chargeback occurs at your business, you are liable for covering the charges related to each chargeback. This is why it is extremely important to get a reliable EVM reader. According to Visa, within two years, counterfeit fraud decreased by 66% at U.S. businesses that switched to EMV readers. Reduced fraud results in reduced chargeback liability.
You are required to be PCI compliant if your restaurant collects and stores client data. To safeguard businesses and customers from online illegal activities, the payment card industry established the PCI Compliance security standard. It is always good to ensure your payment processor and/or POS is PCI compliant.
As a restaurant operator, you're not defenseless against increasingly devious and tech-savvy criminals. The key to preventing credit card fraud is employee training. Always urge staff members to report any questionable activity. Employees should also be warned that engaging in the theft of credit card information is a serious crime with dire repercussions.
Get cybersecurity insurance right away if you don't already have it. If criminals hack into your systems and steal the personally identifiable information of your clients, your standard business insurance won't cover you. However, with the right insurance, the provider insurance provider will pay for everything, even sending experts to handle the situation.
While providing excellent customer service is always critical, protecting your customers' identities and reputations is just as important. They will respect your commitment to reducing the incidence of credit card fraud.
A comprehensive insurance plan is essential to a restaurant's success since it frees the proprietor from thinking about how a potential mishap can jeopardize the company's viability and lets him run his enterprise effectively. Contact our team here at Fuller Insurance Agency for your restaurant insurance needs.