What Are the Best Tips for Processing Credit Card Transactions?

Nicole Madison
Nicole Madison

Often, the best tips for processing credit card transactions are those that involve making sure there is sufficient money available for the transaction and preventing credit card fraud. For example, seeking authorizations right away and charging the card before delivering the product or providing the service generally are recommended tips. A merchant might also benefit from tips that involve verification of the buyer’s identity and billing address information. Some good tips even focus on being leery of new online buyers who only provide free email addresses.

A cashier swiping a credit card.
A cashier swiping a credit card.

One of the best tips for processing credit card transactions is to handle them right away. If, for example, a merchant takes credit card numbers by phone or fax, he may be tempted to wait to process them later in the day. This is particularly true if a merchant is very busy. It is important, however, for the merchant to obtain authorization for these transactions before he does any work for a client or ships any products. This is due to the fact that a client’s credit card transaction may be denied, and then the merchant will be faced with the task of collecting from him.

It is also important to take steps to prevent credit card fraud when processing credit card transactions. A merchant can do this by ensuring that he checks the photo identification of each person who uses a credit card in his establishment. This is important even if the person is a frequent customer. In fact, some merchants go one step further and request two forms of identification, at least one with a photograph, from a person who wishes to pay with a credit card. A merchant may also do well to check whether the signature on the credit card receipt matches the signature on the photo identification card.

A merchant can also take steps to prevent fraud when processing credit card transactions over the phone, via fax, or over the Internet. For starters, he can use a verification system to make sure the address, phone number, and zip code provided by the buyer matches that of the billing account. He may also do well to request the card verification value (CVV), which is a number typically found on the back of the credit card. While this number does not prove the identity of the person holding the card, it does mean that the buyer likely has possession of the card, rather than just the numbers, at the time of the purchase.

Another one of the best tips for processing credit card transactions is to carefully consider online transactions from people who are using free email addresses rather than email addresses from their Internet service providers. Many people use free email addresses, and most of them are not committing fraud. Some, however, do attempt to use free email addresses to make themselves hard to trace when committing credit card fraud. To deal with this, some merchants refuse to accept orders from people who only provide a free email address, especially if the person is a first-time customer.

Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a wiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

You might also Like

Readers Also Love

Discuss this Article

Post your comments
Forgot password?