Reducing credit card processing risk.

Accepting credit cards is a standard part of doing business today, but that doesn’t mean it’s risk-free. Behind each swipe, tap or online submission is a transaction that relies on trust between you and your customer. Most of the time, it works just as it should. But when it doesn’t, you could face a dispute, a chargeback or even fraud.

The good news is that a few proactive habits can make a big difference. Whether you’re taking payments in person or online, the steps you take before, during and after the sale can help reduce your exposure and give you more control if something goes wrong.

We’ve outlined key best practices for both card-present and card-not-present transactions, plus a few tips that apply across the board.

Card-present transactions.

Face-to-face payments give you an advantage: You can interact directly with the cardholder. That visibility can help mitigate fraud, especially when combined with technology and a few smart processes.

• Verify who you’re doing business with. When it feels appropriate, ask to see a photo ID and check that the name matches the name on the card. Even this small step can discourage fraudulent attempts and protect your business from making a sale you’ll later have to reverse.


• Use chip-enabled and contactless technology. Chip cards are the standard, and you’re expected to process them correctly. If a chip card is swiped instead of inserted or tapped, you could be liable for any fraud tied to that sale. Contactless payments, including mobile wallets like Apple Pay^® or Google Pay™, feature even better protections because they use encryption and generate a unique code for each transaction.
  
  If you haven’t updated your terminal or point-of-sale system in a while, now’s the time. A modern system can give you built-in protections like point-to-point encryption and digital transaction logs, reducing the need for manual entry and lowering your risk of error or fraud.


• Respect the decline. Never override a declined card. It might be tempting to assume there’s an error, especially if your system seems glitchy, but a declined authorization is a signal not to proceed and forcing a sale could leave you with no recourse if the transaction turns out to be fraudulent.


• Always offer a receipt. Receipts are more than a courtesy — they’re your first line of defense in a dispute. A printed or digital receipt confirms what was purchased, when and by whom. Most systems now store this information automatically, but it’s still smart to make sure you can access and reproduce receipts quickly when needed.


• Embrace contactless. Each contactless transaction uses a one-time authentication code that can’t be reused. That means even if the data was intercepted, it would be useless to a fraudster. As customers increasingly expect this option, offering contactless payments is both a safety measure and a service upgrade.

Card-not-present transactions.

When the cardholder isn’t standing in front of you, meaning they’re placing an order online, over the phone or via email, the potential for fraud increases. That’s why extra steps to confirm legitimacy are so important.

• Know who you’re selling to. Large or unusual orders from new customers should always prompt a closer look. Verify billing and shipping addresses and, if necessary, request a photo ID to confirm the buyer’s identity. For business transactions, make sure the company name and contact details match publicly available records.


• Pay attention to address mismatches. When billing and shipping ZIP codes don’t match, especially on expensive orders, that’s a red flag. Reach out to the buyer to confirm the reason before proceeding. If the explanation doesn’t check out, it’s better to pause the transaction than risk a loss. Let legitimate customers know you’re doing this to protect their security. Most will appreciate the extra diligence.


• Track everything. If you’re shipping products, keep detailed records such as tracking numbers, delivery confirmation and signed proof of receipt for larger shipments. If you’re providing a service, have your customer sign a work order once the job is done. These records can prove the transaction was completed as agreed.


• Document recurring payment permissions. Recurring charges are a frequent source of disputes, especially if a customer forgets they signed up. Get written or digital consent up front, with clear details about the amount, frequency and duration of the charges. A signed agreement (physical or e-signature) is your best protection.

Some practices are important no matter how the card is used, whether it’s tapped at your counter or entered on your website.

• Be clear about your refund policy. Put your policy in writing and display it prominently on your website, receipts and at the point of sale. If you don’t offer refunds, say so clearly. If you do, always refund the original payment card and issue the full amount unless otherwise agreed. For in-person returns, ask the customer to sign a refund acknowledgment. This helps prevent disputes and ensures the funds go back to the right person.


• Include your contact information on receipts. A phone number or email address gives customers an easy way to ask questions or flag issues directly with you before they escalate to a chargeback with their card issuer.


• Keep an eye out for internal fraud. One simple rule: Employees should never run their own cards. It’s a basic safeguard that keeps personal transactions and business finances separate and can help avoid intentional or unintentional misuse.


• Match your receipt name to your business name. Customers sometimes dispute charges simply because they don’t recognize the business name on their card statement. Make sure the name that appears on receipts and statements is consistent. If your legal business name differs from your brand name, give customers a heads-up on what to expect.


• Close out transactions daily. Batching and settling your card transactions at the end of each day keeps your records clean and helps you stay on top of any errors, delays or processing issues. The longer a transaction sits unprocessed, the higher your risk of problems.


• Maintain PCI compliance. Data breaches are a growing concern, and small businesses are just as vulnerable as large ones. PCI compliance is your responsibility and staying up to date helps protect both your customers and your bottom line. A serious breach can bring more than financial loss — it can damage trust and reputation beyond repair.

Credit card acceptance link opens to a Commerce page may be routine, but it shouldn’t be taken lightly. Every transaction is an opportunity to build trust. There is also the possibility of opening the door to costly problems. But by following proven best practices for both in-person and remote payments, you can dramatically reduce your exposure to fraud, disputes and chargebacks. The key is consistency. Make secure processing part of your everyday operations, train your team to recognize red flags, and keep your technology and policies up to date. These small steps can add up to big protection for your business, your customers and your bottom line.