CARD PAYMENTS HOW TO AVOID BEING A VICTIM OF FRAUD
Article by CabCard Services
www.cabcard.services
As a taxi fleet owner, protecting your business from fraud is essential to maintaining the financial stability of your company. Fraudulent activities can range from credit card chargebacks to fake passengers, costing taxi fleet owners valuable time and money. Here are some tips on how taxi fleet owners can avoid becoming a victim of fraud.
Firstly, ensure that your payment methods are secure. It is essential to use a payment service provider that employs
Secure Customer Authentication (SCA)
measures. SCA is a two-factor authentication process that adds an extra layer of security to transactions, making it harder for fraudsters to conduct fraudulent activities.
In addition, use payment methods that require 3D secure authentication. This feature requires customers to provide additional information, such as a code sent to their phone, to verify their identity before payment is processed.
CARD NOT PRESENT (CNP) FRAUD
TTaxi fleet owners must be aware of Card Not Present (CNP) fraud. CNP fraud occurs when a payment is made without the physical presence of a credit card, such as in online transactions.
Taking payment over the telephone has been common practice for many taxi fleet owners. But this method can pose a significant risk to taxi fleet owners due to the potential for fraudulent activity. Fraudsters can pose as customers over the phone, providing card details which do not belong to them or after the journey has been provided can claim they did not take the journey and seek a chargeback. Often the fraud will not be for a small amount, but generally high values.
To prevent CNP fraud, taxi fleet owners should ensure that they are using a payment provider that employs 3D secure authentication and SCA measures This usually involves secure payment links for example and should be seriously considered as a replacement to inputting card details to a terminal.
FACE TO FACE CONTACTLESS PAYMENTS
Face-to-face contactless transactions are one of the safest payment methods for taxi fleet owners to
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accept. With this method, the passenger simply taps their card or mobile device against the payment terminal to complete the transaction.
One of the reasons these transactions are so safe is that the risk of fraudulent activity sits with the card issuer i.e., the credit card company or bank. not the taxi fleet owner. The card issuer assumes the liability for any fraudulent transactions made using contactless payments, which means that taxi fleet owners or their drivers are not responsible for any losses that might occur.
Contactless payments are processed quickly and efficiently, avoiding the risk of fraudulent chargebacks. The passenger’s card or mobile device must be within a few inches of the payment terminal for the transaction to be processed. Occasionally, a contactless card transaction requires the cardholder to enter their PIN. This is known as Strong Customer Authentication which ensures that the payment is being made by the rightful owner of the card or device.
It is important to note that there is a limit on the amount that can be charged in a single transaction using face- to-face contactless payments. In the UK the payment limit is £100 per transaction. Above this threshold a Chip and PIN verified transaction is required.
For taxi fleet owners, the contactless limit covers the vast majority of taxi journeys and provides a safe and secure method of accepting payment. Above the £100 threshold the transaction is verified by Chip and PIN, but on both counts the shift of risk moves from the taxi fleet or driver to the card issuer. This is an important factor to consider when accepting card payments and significantly reduces the risk of loss due to fraudulent activity.
STAY INFORMED
Staying informed about the latest security measures and payment technologies is an ongoing process that requires a proactive approach from taxi fleet owners. By remaining up to date with the latest developments in payment technology and fraud prevention, taxi fleet owners can ensure that their businesses are protected from the latest threats.
CabCard is a prime example of a secure and convenient payment service provider that offers tailored payment solutions to meet the specific needs of taxi companies, utilising best-in-class tools such as SCA and 3D secure authentication.
APRIL 2023 PHTM
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