You wouldn’t allow someone free access to your bank account, so why would you trust them with your credit card merchant account?
A type of bank account, your merchant account enables you to accept payment by credit or debit cards, and is set-up directly with your bank or through a payment processor. Either way, it enables financial transactions and therefore carries a level of risk.
Chargebacks on card payments – where funds are returned to a consumer, may be due to duplicate or incorrect amounts billed or where products, services or refunds have not been received. However, they can provide a means for reversal of transactions that a consumer denies authorising or are a result of identity theft or fraud.
The merchant, or rather the business, may be held liable for any fraudulent charges. You may have to pay back the funds, along with any fees payable for processing the transaction. You may also lose the goods you have sent, if the consumer denies receiving them.
It is therefore imperative that you take all available precautions to ensure the authenticity of your transactions and the security of your merchant account.
Don’t get caught out.
Don’t process a transaction if you think it might not be legitimate.
Don’t allow your merchant account to be used for any purpose other than what it was set-up for and your bank has approved.
Protect your merchant account in the same way as you would protect your bank account.
If you are suspicious of a transaction, report it!