Practical steps to prevent credit card and payment fraud as an independent retailer

As credit card fraud becomes increasingly sophisticated, taking these steps could help you stay ahead of the fraudsters…

With high-tech payment terminals now ubiquitous on the high street retailers are better equipped than ever to take payments securely.  Credit card fraudsters have had to adapt and are now adopting increasingly sophisticated methods when targeting the high street.

A number of Bira retailers have recently reported a spate of card-present fraud (fraud done in-person at retail outlets) in their own and neighbouring stores, with the issue causing concern for independent retail businesses across the UK. It’s more important than ever to protect your business, so here are a few practical steps to help you minimise the risks.

1.  Ensure staff training is up to date

Make sure your team is trained to recognise suspicious behaviour.
With training they should be able to:

• Check that the cardholder's name matches their ID if identification is requested.
• Be alert for customers who seem nervous or rushed during transactions.
• Watch for unusual buying patterns, such as multiple high-value purchases in quick succession.
• Ensure physical devices are always kept out the reach of customers.

2.  Verify the card's authenticity

When processing payments, it is a good idea to take the following precautions:

• Inspect the card for signs of tampering or damage, such as peeling or mismatched numbers.
• Ensure the card's hologram or embossed details are present and clear.
• Verify the signature on the back of the card against the one on the receipt.

3.  Use Secure Payment Technology

Investing in up-to-date, secure point-of-sale systems, such as takepayments from Global Payments, is essential for retailers. You can protect your business by looking for a provider that supports:

• Chip-and-PIN and contactless payments, which are harder to duplicate.
• Fraud detection tools that flag unusual transactions.
• PCI DSS compliance to protect sensitive cardholder information.

4.  Ask for alternative payment method

If unsure about a card – including for security reasons – shops can ask for customers to pay another way. If you feel that a card shouldn’t be accepted for a contactless payment you could request that the customer to use chip-and-pin or cash instead.

5.  Report suspicious activity quickly

If there is reason to suspect credit card fraud, the simplest way to avoid it is refusing the payment. If you suspect fraud and the above steps have been taken:

• Do not complete the transaction. Politely decline and advise the customer to contact their bank.
• Record details of the incident and inform your payment processor or acquirer.

By staying vigilant and proactive, you can reduce your risk of falling victim to credit card fraud while maintaining trust with your customers.

You can read more about the Government’s Stop! Think Fraud campaign here.