I recall how, many years ago now, a number of textile screen printing shops in Calgary were the victims of a credit card fraud. They fulfilled orders for blank garments on the basis of a credit card number given over the phone. These numbers were stolen from the cards used to pay for gas at a gas station in the City. Eventually the card holders saw the illegitimate charges on their monthly statements but by then the fraudsters and the shirts had disappeared.

One of the owners in question explained how his lawyer told him that, while he had a strong case, suing the credit card company for a refund of the stolen amount they had billed back to him, would not work in his favour. The lawyer explained that the credit card company’s legal resources and budget far outstripped his and they could drag the proceedings out until his resources were exhausted. It turned out to be an expensive lesson in handling credit card transactions at the time.

Technology has become much more sophisticated since then and there are now much better protections built into the process for vendors. Nevertheless, vendors are still vulnerable. In this regard, Moneris has issued a paper on five fraud prevention myths that could be hurting your business. I’m listing them here but if you want to explore them more fully, I suggest that you contact Moneris or use the link at the bottom of this page:

  1. It is a myth that CVV or AVS numbers protect you against chargebacks. They don’t.
  2. It is a myth that the payment terminal is secured and can therefore be left with the customer. Don’t do it.
  3. It is a myth that you can’t fight chargebacks. You can.
  4. It is a myth that fraud prevention tools aren’t worth the cost. There are cost-effective fraud prevention tools.
  5. My Moneris device is PCI DSS compliant so that means I am complaint too. No, not necessarily.

Here is where you can explore this further.