September 8, 2009

• BBB Warns Small Businesses, Pt.4
    Businesses are in business to do business

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  With the major portion of business being conducted over the internet and through email, it would be defeating to advise any small business owner to conduct business in person only or refuse credit card payment. However, there are some ways that businesses can protect themselves while reducing the odds of becoming a victim of credit card fraud. The Minnesota and North Dakota BBB's offer the following suggestions:

   Verify the buyer's billing address before sending merchandise. Consider paying for an Address Verification Service, which confirms that the billing address given by the customer matches the billing address of the credit card.
   Use a shipper that tracks delivery like UPS, FedEx, or a reputable freight company. The US Postal Service also offers this service for a small fee. Some shipping firms provide tracking information and signature confirmation. This information is very valuable in confirming whether or not a credit card customer received the merchandise.
   For items that are downloadable off the internet, such as software or music, design a plan that will deactivate or deny access in the event the credit card information checks out to be stolen.
   Clearly display your return policy, product guarantees, restocking fees, and conditions on your Web site. It will help you in your credit card dispute case.  Maintain well organized and thorough records in anticipation of presenting information to the credit card company. When presenting your case, be sure to include copies of your delivery records, invoices clearly stately your return policy, and any correspondence relating to the purchase.
   Know your customers' spending habits. Periodically review sales records to alert you to customers that have a pattern of complaints or frequent credit card charge backs. You should consider cutting of business ties with these individuals.

  Taking these precautions will not guarantee you will not become a victim of credit card or friendly fraud; however, it will greatly reduce the chances and give you greater peach of mind.

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