Tips to Avoid Credit Card processing Frauds

Credit card SCAM is not a new term but earlier it was only the customers who were the victims but not the small businesses have come under its ambit. As a merchant credit card fraud may not be a new term for you but before you are stuck with a bill in your hand, you need to be really cautious. You need to practice caution much before you have your first transaction processed. Prior to setting up a offshore merchant account with a credit card processing company, you need to be aware of the types of scams and at the same time take all precautionary measures to avoid them. You need to make an informed decision when it comes to picking your credit card processing company by running a thorough background check.

When you are ready to open your merchant account (like GSPAY), you would be asked to furnish personal as well as business related information. Since banks are already experiencing such a credit crunch, so you would have to furnish a lot of information pertaining to your personal finance, credit history and finance information related to your business. This is mandatory for the creation of merchant accounts; hence you are bound to provide this.

Now, keeping all the security issues in mind, you need to be a little more cautious while providing the information. Do not provide any information over the internet by filling up online forms from the various credit card processing companies; instead go to the bank and provide all papers personally to the bank executives,. The bank might charge you a little for this service but you would be saved from the fraudulent credit card processing companies. Banks use secure systems; hence, there is very little chance of information pilferage.

The credit card processing companies often send their sales representatives who offer you attractive rates for transferring your merchant account but it is better to avoid these. They try to entice customers into their trap by offering quick registration and hefty discounts. Believe me, majority of the companies are running SCAMs and they would never disclose the hidden charges which you would be handed over every time a transaction takes place. When you apply for the merchant account it is better that you have all your documents ready. Some of the documents that you would be asked to provide are:

  • Details about the name of the business, address and time of operation
  • Your SSN number along with your tax ID
  • Annual turnover
  • Copy of your latest bank statement
  • Current credit card statements if you already use credit card transaction for your business