An example of card payment fraud is: ”I’ve made a payment over the phone or online to a business. They might have wrote my card details down or it might be recorded on the phone line and they might have had a data breach. From that, my card details have now been stolen. Hackers can use your card to fake illegitimate purchases on the phone or online again with your card details. I know that I’ve not made that payment, so what I can do is I can go to my bank and say that wasn’t me and I can claim that money back, which is called a chargeback.”
However, chargeback fraud, for example, is ”I’ve made a purchase to a company but I know that I don’t want to pay for those goods. What I’ve done is I’ve had my delivery, I now have my goods or I’ve used the service from that business, but I decide that I want my money back. I can go to my bank and say I never made that payment, even though I did, and get my money back that way.”
This is a massive issue for businesses these days as they’ve lost out on the money that I’ve paid but also the goods that they’ve already sent out.
If you’d like to learn more about how to secure your business when taking card payments, contact Key IVR today.
Presented by Abi Richardson – Partner Relationships Manager at Key IVR