Protecting Cardholder Data: Why Partnering with a Payments Provider is Essential

As businesses expand into multi-channel experiences—from online ordering to digital invoicing—they open doors to growth but also expose themselves to new fraud risks. Cybercriminals are constantly evolving their tactics, making it critical for businesses to stay ahead of threats.

From emerging digital fraud schemes to gaps in operational processes, there are key steps you can take to enhance data security and protect your customers. Let’s dive in.

🛑 Stay Ahead of Emerging Fraud Threats

Fraudsters are becoming more sophisticated, using new techniques to exploit businesses and steal cardholder data. Some of the most common tactics include:

🔹 Submitting fraudulent transactions to extract valid payment information.
🔹 Using prepaid cards to conduct fraudulent purchases or launder money.
🔹 Exploiting refund policies by returning fake items or altering receipts.
🔹 Hiding malware in phishing scams to steal sensitive payment data.

👉 How to Stay Protected: Work with a trusted payment provider, like Smarta Payments, to stay informed on evolving fraud tactics and implement the latest security measures to safeguard your business.

🔐 Upgrade Your Payment System for Maximum Security

Your payment solution should be the first line of defense against fraud and cybercrime. Whether you operate in-store, online, or across multiple locations, your payment system must offer a seamless balance of convenience and security.

✅ Essential Security Features for Your Business:
✔ Data Encryption – Keeps sensitive information unreadable to hackers.
✔ Card Tokenization – Replaces card details with a secure token for added protection.
✔ Multi-Factor Authentication (MFA) – Requires additional verification beyond card details.
✔ 3D Secure (3DS) Validation – Adds an extra security layer to online transactions.

💡 A secure payments provider will help you implement these tools to prevent fraud before it happens.

📋 Develop Fraud-Prevention Best Practices & Train Your Staff

Even with the best security technology, your staff and internal processes play a crucial role in fraud prevention. Here’s how to strengthen your day-to-day operations:

🛑 Before a Customer Makes a Purchase:

🔹 Keep your payment devices secure – Never leave checkout stations unattended.
🔹 Enable fraud detection tools – Use Address Verification Service (AVS) and Card Verification Value (CVV2) for online payments.
🔹 Use payment devices for business-only transactions – Never process payments on behalf of another business.

💳 During the Purchase Process:

🔹 Confirm transaction authorisation – Ensure a valid authorisation code before shipping orders.
🔹 Match refunds to the original payment method – Prevent fraudulent refund claims.
🔹 Avoid splitting transactions – Process the exact sale amount in a single payment method.

🚨 Red Flags to Watch for During Transactions:
⚠️ Unusual bulk orders—especially to apartments or self-storage units.
⚠️ Multiple card numbers used for a single purchase.
⚠️ Urgent processing requests with immediate tracking number demands.
⚠️ Rush shipping requests where the customer disregards extra costs.
⚠️ Orders sent to addresses different from the cardholder’s billing address.

📊 After Transactions Are Complete:

🔹 Review daily transactions – Check for inconsistencies or suspicious refund patterns.
🔹 Monitor chargeback activity – A rise in disputes may indicate fraud targeting your business.
🔹 Flag unusual purchasing behaviors – Repeated large orders, frequent refunds, or excessive chargebacks require deeper investigation.

🤝 Partner with a Payments Provider to Prevent Fraud

Navigating fraud risks doesn’t have to be a solo effort. Your payment partner plays a vital role in identifying, preventing, and managing fraud attempts. Here’s how they can help:

🚨 Code 10 Authorization Calls

A Code 10 Call is a preventive tool used to verify more details about suspicious transactions—whether they happen in-store or online. It allows merchants to confirm legitimacy before processing payments or shipping products.

💡 When to Use Code 10 Calls:
✔ Customers placing orders via relay calls (operator-assisted phone orders).
✔ Transactions with unusual payment behavior (e.g., multiple failed attempts, mismatched billing/shipping addresses).

🔎 Advanced Loss Prevention & Fraud Monitoring

Your payments provider uses AI-driven fraud detection systems and dedicated security teams to monitor transactions in real-time and flag potential risks before they escalate.

At Smarta Payments, our fraud prevention strategies include:
✔ AI-powered risk analysis to detect suspicious transactions.
✔ A team of fraud specialists dedicated to investigating high-risk activity.
✔ Chargeback prevention tools to protect against fraudulent disputes.

💡 These measures save businesses millions in fraud losses every year.

⚠️ Chargeback Management: Be Prepared

Even with strong security measures, chargebacks can still happen. Customers may dispute charges due to fraud, unfulfilled orders, or even chargeback abuse.

💡 Your payments provider can help:
✔ Provide case management tools to track and dispute chargebacks.
✔ Offer support teams to navigate the resolution process smoothly.
✔ Help identify patterns of chargeback fraud targeting your business.

🚀 Secure Your Business & Build Customer Trust

As digital-first experiences continue to shape the future of commerce, protecting cardholder data must be a top priority. Strengthening security doesn’t just protect your business—it builds trust with your customers.

How to Get Started:

✅ Upgrade to a secure, fraud-resistant payment system.
✅ Work with a trusted payments provider to monitor and prevent fraud.
✅ Train your team to detect and respond to suspicious transactions.

💡 Want to take your security to the next level? Let’s talk. Partner with Smarta Payments to safeguard your business and keep transactions fast, secure, and fraud-free.

Contact us today to learn more.