Small Business Security: Five Tips to Avoid Credit Card Fraud

Learn how to accept manually entered card payments. When it comes to tapping into new markets, businesses that accept over-the-phone payments have a significant advantage over those that don't. MOTO payments open your business up to a more broad audience, allowing you to attract and serve a greater number of customers. For customers, having the ability to pay over the phone is an added level of convenience — one that requires minimal effort, and causes far less disruption to their busy day than making a trip to a brick-and-mortar store. With Zeller, it's as simple as toggling the MOTO switch on. Before you start accepting payments from customers over the phone, familiarise yourself with the below guidelines and make sure your employees know what to do to safely accept manually entered card payments. Know what to look out for Naturally, with these types of transactions, the risk of fraud increases. A fraudster may attempt to make a phone or mail order purchase using someone else’s compromised card information, taking advantage of the fact that it’s difficult for a merchant to verify the identity of a cardholder without meeting them face-to-face. When processing MOTO transactions, there are a few things to look out for: large orders with unusual quantities, placed by new customers. orders where the card is initially declined, and the customer continues provides different card details in an effort to complete the transaction. customers who request payment be made by a third party (e.g. freight or delivery companies). In all of the above circumstances, it pays to take a few extra steps to verify the customer is indeed the cardholder. Although it's unlikely your business will be the unfortunate target of fraud, it's important to mitigate the risks. The vast majority of disputes can be halted before they even happen. Verify the customer’s identity The most important thing you should always do when processing a transaction is to verify that the customer is who they say they are. When processing a manually entered card payment, there is an obvious hurdle to consider: your customer is not standing in front of you. Instead, they are placing the order via phone (or perhaps email mail). Because neither the card nor the cardholder is present, it can be difficult to verify the customer’s identity. If you’re not able to verify a customer’s identity, you can: request a copy of their government-issued ID, and check to see whether the details match those of the payment card. ask the customer to sign an invoice or, if you’re providing a service, proof of service. Then, check the signature matches the payment card signature. check that the billing and shipping details match, if you’re shipping a product. If any of the details are inconsistent, let the customer know and request clarification. Any customer that is not willing to provide this information should not be served. Obtain a signature It’s always a good idea to obtain signed documentation for the goods or services you provide. Doing so allows you to establish a clear set of payment conditions with your customers, whilst also capturing signatures for your records. Plus, requiring a signature may put off any potential fraudsters. If a customer refuses to sign a document you require, you may decide to refuse them business. Email a receipt An email receipt is easier to keep on hand and track than a paper receipt. It’s a good idea to email your customer a receipt after the transaction is processed, so that they have the details in front of them. Additional measures for higher-value transactions Of course, if you typically accept transactions of a higher amount, the risks are greater so you should implement more stringent security measures. Depending on the type of business your run, there are additional security measures you could consider. There are three documents you should consider. Clear and binding service terms that explain customer liability. A clear, easily accessible refund policy. Signed contracts or customer agreements. Whenever money is involved, there is always a potential risk of fraud. Whether you’re accepting cash, card, or MOTO payments, vigilance is required; it's part and parcel of running a business. Need more information? Our Support team can help with any questions about accepting manual card entry payments. Read more about how Zeller keeps your business safe here .

At best, chargebacks are frustrating. At worst, they are costly disruptions that can harm your bottom line. Understanding why chargebacks occur – whether legitimate or fraudulent – is key in helping you prevent them. Read on to discover everything you need to know about chargebacks, and the necessary steps you can take to avoid them. What is a chargeback? A chargeback is a form of customer protection that allows them to file a dispute against a merchant, with the aim of having a charge returned to their card. In the simplest terms, it is a type of payment dispute that results in a refund. However, instead of your business providing a refund directly to the customer, the customer’s bank reverses the charge, removing money from your bank account and placing it back with the customer. Effectively, a customer can get money back without your agreement, or even involvement. Chargebacks are a way to ensure customers are protected against dishonest or fraudulent businesses, however, they can also be exploited by dishonest customers or criminals using stolen credit card information to pay for goods or services. How do chargebacks work? When a customer requests a chargeback from their bank, the bank investigates the issue by contacting the vendor business. If the business is unable to provide adequate evidence that the product or service was in fact provided as promised, the bank will reverse the charge on the customer’s credit card. Usually, the chargeback process goes as follows: The cardholder notices a transaction that they believe is unauthorised, fraudulent, or erroneous and contacts their bank or credit card company to dispute the charge and request a chargeback. The card issuer investigates the dispute by requesting additional information such as receipts, order confirmations, shipping details, or any communication between the cardholder and the merchant. If the card issuer determines that the cardholder's claim is valid, they proceed with the chargeback process. The disputed charge is then debited from the merchant’s account and is credited back to the cardholder’s account. The merchant is notified of the chargeback and may be given the opportunity to respond and provide additional evidence to dispute it if they believe the chargeback is unwarranted. If the chargeback is upheld, the merchant loses the disputed funds, and they may also incur a chargeback fee. The impact of chargebacks on businesses. Not only are chargebacks a source of anxiety for merchants, but their cost to your business is actually much greater than just the revenue of the sale. Chargeback fees Chargeback fees are fees imposed on merchants by banks or payment processors to cover the costs associated with processing chargebacks. When a chargeback occurs, the merchant may be charged a fee, regardless of whether the chargeback is ultimately resolved in their favour or not. In Australia, chargeback fees range from around $25 to $40 per chargeback. Lost merchandise In the situation where a cardholder receives a product, and initiates a chargeback process, the cardholder is usually obligated to return the merchandise, however this is not guaranteed. If the merchant loses a chargeback in addition to forfeiting the product, the cost to their business is doubled as they cannot resell it or recoup its value. Operational and marketing costs Whether you’re selling a product or a service, a lot of work happens before it reaches the customer. From packing and shipping to managing inventory and staff, countless hours are spent preparing the customer’s final product, and time is money. What’s more, a sale doesn’t always come for free. Money spent on marketing also disappears every time a charge is reversed. 6 common reasons for chargebacks and how to avoid them. 1. Unmet expectations If the item or service that a customer pays for is defective or not as described, they can request a chargeback. How to avoid this kind of chargeback: Ensure all product descriptions – whether on a website or in store – are accurate; Use photography that clearly and accurately shows the product; Publish accurate size guides, if selling online; Carefully check products for defects before sending them out for delivery. 2. Onerous or unclear returns policy If a customer cannot find your returns policy, or if the policy is unclear, they can request a chargeback. How to avoid this kind of chargeback: Make your returns policy clear and straightforward; Ensure your returns policy is visible on your receipt, website, and in-store; Make it easy to contact your business by publishing a customer service phone number or email address on your website and receipt. Learn how to customise your receipts with Zeller here . 3. Unrecognisable business name If a customer sees an unfamiliar name on their credit card statement, they may request a chargeback. How to avoid this kind of chargeback: Ensure your business name is clearly and consistently written across your website, receipts, marketing material, and in-store; Check that how your business name appears on bank statements is clear and up to date. Learn how to change how your business name appears on their bank statements here. 4. Inefficient service or delivery If a customer’s product takes much longer to arrive than anticipated, or if a service takes longer than expected, they may request a chargeback . How to avoid this kind of chargeback: Where possible, provide tracking information for shipments and send updates if there are any delays or issues with the order; For high-value items, request a signature upon delivery; Ensure that all terms of service and delivery timelines are clearly communicated to customers, both on your website and in any confirmation material you send them; Offer prompt and responsive customer support Keep detailed records of any communication with your customers or shipping documentation, which could be used as evidence in the case a charge is disputed 5. Chargeback fraud If a dishonest customer wants to avoid paying, while still keeping the purchased goods or services, they might falsely claim that the transaction was unauthorised and request a chargeback. This is what is known as chargeback fraud. To avoid this kind of chargeback, it’s important to have a process for documenting evidence that your agreed upon product or service was provided. How to avoid this kind of chargeback: Take a photo of your goods in their packaging before they are sent. If providing a service, ensure to take photos or screenshots of the finished work. Ensure your customer signs a contract upon completion of any work. Provide your customer with clear, itemised receipts. If the product is being shipped, provide tracking details and request the customer’s signature 6. Stolen card information If a criminal uses stolen payment information to make an unauthorised purchase, the legitimate cardholder may discover the transaction on their statement, and initiate a chargeback. How to avoid this kind of chargeback: Wherever possible, encourage customers to pay in person rather than over the phone. Fraud rates are considerably lower with card-present transactions compared to card-not-present transactions. When you do have to process over-the-phone payments (otherwise known as  MOTO payments ), we recommend requesting extra details to help ensure the person making the payment is in fact the legal cardholder, such as their full name, billing address, and some form of ID. If the product is being shipped, provide tracking details and request the customer’s signature (especially if payment has been made by MOTO). Consider taking payment via  Zeller Virtual Termina l or  Zeller Invoices , which incorporate an additional layer of security (3DS), which asks customers to verify the payment via their banking app. How and when to file a chargeback dispute. If someone requests a chargeback from your business, the cardholder’s bank or credit card company (acquirer) will notify you. From there, you’ll have the option to challenge the chargeback. This is called a chargeback dispute. After being notified of a chargeback, you will be given a deadline before which you can dispute the claim. Timeframes will vary from one acquirer to the next, but on average the deadline is between 10 and 30 days from the time you are notified. If you miss the deadline, you will automatically lose the chargeback dispute. When you are notified about a chargeback, you will be given a reason for the dispute, such as, the customer did not receive their goods or that the item was defective. If you choose to challenge the chargeback, it’s essential that you compile evidence that directly addresses the chargeback reason. For example, if the reason indicates that the customer didn’t receive the item, you should submit any delivery information you have that supports the claim that they did indeed receive the item. Without sufficient evidence, banks are almost always going to side with the customer. How are chargebacks managed at Zeller? No chargeback fees. Unlike other financial service providers, Zeller will not charge your business additional chargeback fees, and our dedicated Account Services team will work with you to compile information to help you defend the chargeback, too. 3D secure authentication.  When you accept payments with  Zeller Invoices  or  Pay by Link , merchants are provided with an additional layer of protection to deter unauthorised card use. 3D Secure (also known as 3DS) authentication may prompt the cardholder to enter a one-time passcode or a similar authentication step on their banking app in order to proceed with the payment. 24/7 transaction monitoring. When you accept payments with Zeller, you’re not alone. Behind every transaction is a team of anti-fraud experts and 24/7 monitoring that – in addition to the best practices outlined above – will reduce your risk of chargebacks. You can transact with confidence knowing that our dedicated team works hand-in-hand with advanced tools to successfully identify and act on suspicious activity. Chargeback dispute support. In the event that a chargeback does occur, our payment disputes team is here to support you. We will deal with the bank to help save you hours on the phone, and we will not charge you a fee. Plus, if you’re ever unsure, you can contact our support team from 9AM to 1AM, Australian Eastern Time, and you can read more about how Zeller keeps your business safe here.

Discover how Zeller MOTO payments work for your business MOTO transactions are a quick, convenient, and secure way to accept payment from customers remotely. Also known as ‘manually entered card payments’, these types of transactions are another way for merchants to grow their business. Unlike traditional card payments — where both the customer and their card are physically present — MOTO payments can occur anywhere. Businesses that accept MOTO payments aren’t reliant upon having a brick-and-mortar location for customers to visit, or even a website or online store. If you've got a Zeller Terminal, you can process a MOTO payment from anywhere in Australia. What is a MOTO payment? MOTO is short for Mail Order, Telephone Order. It refers to the act of processing a payment remotely — over the phone via a verbal request, or in writing via mail. Both of these scenarios are what’s known as card-not-present transactions, or CNP payments. Instead of a customer tapping, dipping, or swiping their card or another payment device to Zeller Terminal, the merchant will enter the card details and process the transaction manually. Typically, when a merchant processes a MOTO transaction, neither the card nor the cardholder is physically present — making it difficult to verify the purchaser’s identity. This lack of visibility increases the risk for fraudulent transactions to occur. For this reason, additional security practices are required to process MOTO payments. How to set up MOTO payments with Zeller Terminal Before you can accept your first MOTO payment on Zeller Terminal, you’ll need to update your software. Follow the simple steps below. First, check to see if your software updated overnight. If it has, you’ll notice a new ‘Mode’ button in the right-hand corner of the payments screen on your EFTPOS terminal . If not, you’ll need to re-boot your Zeller Terminal. Once re-booted, the new software update will be installed and the new ‘Mode’ button will be visible. MOTO settings will now be available in your Zeller Dashboard and in your Zeller Terminal settings, too. For more information, visit the Zeller Support Centre . How to accept MOTO payment with Zeller Terminal To process a MOTO payment: Tap the ‘Mode’ button and then tap MOTO. You’ll notice that the payments screen turns blue to indicate that you’re now processing a MOTO payment. Enter the transaction amount. Tap Manual Charge. Verify the cardholder’s identity. Enter the card number, expiration date, and CVC then tap Next . Check the amount and card details are both correct. Tap Charge. You also have the option to default to MOTO payment. This is especially handy for merchants operating without a brick-and-mortar shopfront, or those processing a higher volume of MOTO payments. Simply update your Sites settings in Zeller Dashboard by toggling Default to MOTO on. To reflect the increased risk of fraud with MOTO payments, you can require that a site PIN be entered before a MOTO payment can be processed by toggling Require site PIN on. Are MOTO payments safe? Zeller monitors your transactions round the clock — 24 hours a day, 7 days a week — to help prevent fraud before it occurs. Our expert team of fraud detectors works alongside real-time, machine-based transaction monitoring in order to identify and reduce fraud risk. However, it’s important to ensure your staff is knowledgeable about securely accepting MOTO payments, as well as best practices for doing so, before you begin accepting MOTO payments from customers. Visit the Support Centre for more information on the risks of accepting MOTO payments, and tips to help keep your business safe when processing manually entered card payments. How much do MOTO transactions cost? To cover the cost of measures put in place to protect against fraudulent transactions, the fee to process a manually entered card transaction is 1.7% — slightly higher than the flat fee of 1.4% applied to in-person card payments. Zeller exists to help Australian businesses grow. When Zeller merchants told us they wanted the ability to accept payment over the phone, our team got to work building the functionality to make it possible. If you have any questions, reach out on Facebook or call our Support team on 1800 935 537. Or, email feedback@myzeller.com to provide any product feedback or feature ideas to our team directly.