If you’re a small business owner, no matter how long you’ve been open, every transaction counts. Whether you’re planning an expansion, paying off your mortgage, or just getting by, you don’t have much room in your budget. Take these measures today to prevent fraud and theft from derailing your financial plans.
Stay Vigilant About Fraud
Fraud is easier than ever in the age of credit cards and online banking, so you must invest in chargeback fraud protection. Some chargebacks occur without malicious intent, especially if you ignore return requests or don’t prioritize customer service. However, if someone’s credit card is stolen, the thief could make fraudulent purchases on a customer’s account. Chargeback protection companies such as Ethoca help you recover from these incidents, which can be incredibly damaging to your finances.
Ask for Proof of Identity
If you’re not sure about someone’s identity when he or she is making a major purchase, ask for some proof. This can be a driver’s license, state- or military-issued ID, or a passport. Many credit card users who have experienced fraud in the past write “See ID” on the signature lines of their cards. Check this space every time you swipe someone’s card and do not accept cards that are both unsigned and without this note.
Check for Counterfeit Bills
Counterfeit paper money has become less of an issue recently since most people use credit cards for everything. Still, you should check every bill worth $50 and more with a counterfeit pen. This tool contains iodine instead of ink, which turns black when it encounters regular paper. Place one inside each of your cash registers so that all your cashiers are prepared when a customer wants to use large bills.
Watch for Theft
Especially if you sell small products that are able to fit in people’s pockets or purses, watch for theft at all times. Install security cameras throughout your store, particularly in areas that can’t be seen from your cash registers. Post signs notifying customers about your security cameras and reminding them that shoplifting makes your prices more expensive for everyone. As you monitor customers, make sure to avoid racial profiling or other discriminatory behaviors.
Large corporations can afford to lose some money to fraud or theft, but even one fraudulent purchase hurts your small business. Take these measures today to keep your prices as low as possible while still making a profit.