Fraud is an ugly reality in business today. As many businesses that are trying to make an honest living, there are just as many criminals lurking around, seeking to make a quick buck. In the credit card processing industry, fraud is a real risk. The good news, however, is that the industry as a whole knows this and is incredibly vigilant about preventing and dealing with fraud. A reputable merchant services provider will know how important it is to keep your business data and the data of your customers safe. Their industry reputation is on the line if they don't. Many merchant service providers have both e-commerce and standard retail service packages. Here are a few tips on establishing if the merchant service provider you've signed up with is trustworthy.

Industry Accreditation

The first thing that you need to check is the merchant service provider's industry accreditation. In the United States, the industry is governed by the Payment Card Industry Data Security Standard. This is sometimes referred to as the PCI DSS. This guideline was established in 2004 by credit card issuing companies specifically for the card processing industry to help prevent fraud.   The PCI DSS applies to both merchant account holders and merchant service providers. Merchant service providers in particular are required to comply with the code. As the industry evolves, the standards are revised and it is the merchant service provider's responsibility to keep current with developments.  It is not difficult to establish if a merchant service provider is compliant. Firstly, they will have a certificate of compliance and be a member of an industry association. In addition, they should be able to answer any questions that you may have with regards to fraud or PCI standards. Most reputable merchant service providers have a dedicated help desk to answer any queries that their merchant account holders may have regarding fraud.

Proven Security Systems

Criminals are becoming increasingly inventive in finding ways to commit fraud. This certainly keeps the security industry on their toes. A reputable merchant service provider will never rest on their laurels. They will be proactive in combating fraud by having the latest systems and checks in place to protect the integrity of the card processing systems. Often they will have a dedicated security team that maintains checks and updates the system on a daily basis. If they receive any fraud alerts, they will often forward this information on to their merchant account holders.  Their objective will be to retain the integrity of the system at all times so fraudsters do not get an opportunity to access your company data or your customers' credit card information.

Fraud Questions Answered

Merchant service providers have a vast amount of experience in dealing with and combating fraud. They work closely with other major players in the credit card industry such as Visa, Mastercard, American Express and Diners Club. A reliable merchant service provider will make this wealth of knowledge available to their customers. Often when signing up, new merchant account holders can attend a training seminar on fraud prevention. In addition, the sales consultants and help desk employees should be available to answer any fraud-related queries you might have. A trustworthy merchant service provider knows that the chain is only as strong as its weakest link. As a new merchant provider, you need to be made aware of the processing protocols and possible risks so you know how to avoid them. The merchant service provider therefore takes on part of the responsibility of getting you up to speed with fraud prevention and the associated risks with credit card processing.

Playing Your Part

As mentioned, it is not only merchant service providers that are governed by the PCI standards. As a merchant account holder, you are equally responsible for being vigilant about fraud prevention.  In other words, you can't simply leave it up to your merchant service provider to ensure that your business does not fall victim to fraud. As a business owner, you need to learn as much as possible about fraud prevention. You also need to train any employees that will be processing payments on the various security checks that need to be in place. Simple things such as signature verifications, address verifications or positive personal identification of the card holder can go a long way to help prevent fraud. Remember, as much as you are trusting your merchant service provider, they are also relying on you to be vigilant in fraud prevention.