Many small business owners mistakenly believe that credit card fraud is something that just won’t happen to them. In reality, they need to take proactive steps to prevent this type of fraud.
The easiest way to fight fraud is to require all of your transactions to be shipped to the billing address of the cardholder. This strategy serves as a strong deterrent, since the goods will never reach the fraudster.
Payment processing systems that automatically do a great job of detecting fraud include PayPal and Shopify. Shopify has free tools that detect IP addresses, billing addresses, and other relevant information to let you know when a transaction is risky. PayPal is great because the platform simply won’t process a risky transaction.
If you choose to use a standard payment processor, like Blue Pay for example, you might get pulled in by the promise of a lower rate (say 2.3 percent per transaction rather than Shopify at 2.6 percent.) However, you may be hit with fees - raising your transaction rate to as much as 4.6 percent. Also, you won’t get any notifications of risky transactions and standard fraud tools are pretty rudimentary.