Merchant Guide: 10 Essential Tips for Preventing Chargebacks

March 14, 2018

A chargeback – also called a reversal – is the return of credit card funds that were used to make a purchase to the cardholder. A chargeback occurs when a customer makes a refund request through their credit card’s issuing bank.

stop chargebacks image

Most chargeback situations arise at the time the transaction is completed. Possible reasons for chargebacks include:

  • Unauthorized use of a credit card (stolen card)
  • Product or service not being received
  • Customer dissatisfaction with a product or service
  • “Friendly fraud” or the result of a consumers filing an illegitimate chargeback

Every business wants to keep their chargeback expenses to a minimum. Here are our top tips on doing so.

  1. When a cardholder disputes a transaction, the issuing bank may request the merchant to provide copies of receipts and other paperwork related to the sale. Always respond to these requests.
  2. Do not a complete a transaction if the authorization request was declined. Do not repeat authorization for payments that are declined.
  3. Make sure your billing descriptor is accurate. Often a customer will initiate a chargeback because the business name on the statement is unfamiliar and doesn’t match your DBA.
  4. Clearly communicate your contact information, as well as return, refund, cancellation and shipping policies.
  5. If a customer is ordering online, promptly send a receipt via email.
  6. Settle and deposit your sales receipts with your merchant bank in a timely manner.
  7. If a customer request cancellation of a recurring transaction, such as a membership or service, always respond to the request and cancel the transaction as specified by the customer.
  8. Be accurate and clear about your product and service to prevent any customer misunderstandings.
  9. Ship merchandise before depositing and transaction.

If a product or service is going to be delayed, advise the cardholder the option of a different product or service or canceling the transaction all together.

Little-Known Secrets of Credit Card Numbers

February 13, 2018

The string of digits on the front of your debit or credit card might look random, but they’re actually telling a story. While each card brand (Visa, MasterCard, American Express, Discover) has a slightly different formula, here’s an overview of what the numbers signify.

A bank identification number (BIN) is the initial four to six numbers that appear on a credit card. BINs help ensure that transactions are routed through the proper card network and financial institution so that the transaction can be authorized.

The four most common credit cards in the US are Visa, MasterCard, Discover and American Express. Their starting BINs are as follows:

  • Visa: 4
  • MasterCard: 51-55, 2221-2720 (New)
  • Discover: 6011, 622126-622925, 644-649, 65
  • American Express: 34, 37

Numbers following the BIN signify everything from the currency being used, card type, bank processing the transaction and cardholder account number. The final digit is referred to as a check digit, which is a random number used to protect against errors and fraud.

The Luhn Formula

This low-tech formula can show whether a credit card number is valid. Try it for yourself.

  1. Enter your credit card number
  2. Double every other number, starting with the second number from the right. Write those digits under your original card number. Cross out any number you doubled.
  3. Look at the new line of numbers. If a number has two digits, add those together. Again, write those numbers down in a new row, and cross out the ones added together.
  4. Add together all numbers that are not crossed out.
  5. Is the sum’s last digit a zero? If not, the credit card number is not valid.

It’s important to note that the Luhn formula was designed to detect accidental data entry errors and not as a defense against fraud. And, it’s a pretty cool party trick.

Data Security Fast FActs

February 9, 2018
Key statistics from the 2017 Thales Data Threat Report, Retail Edition.
Data Security Fast FactsAccess the entire report here:

Take Your Business to Paradise with POS Solutions from OMEGA Processing

February 6, 2018

If it’s time to get the tools you need to take your business to the next level, OMEGA Processing has the point-of-sale system solutions you need. OMEGA offers tablet-based, wireless, peer-to-peer Paradise POS point-of-sale system solutions for both retail and restaurant establishments.

Built upon the latest technology our lightning-fast POS systems provide labor and inventory management tools to support your business. Our iOS-based Systems are secure and customizable. Check out the short video for a brief overview of our Paradise POS options.

POS with cash drawer

Ready to Act On Those 2018 Growth Plans?

January 25, 2018

This isn’t your father’s cash register. Today’s point-of-sale (POS) systems are an affordable, scalable tool that allow you effectively manage inventory, reporting, employees and operations.

Systems typically consist of hardware (often a tablet device), POS software and a payment gateway application. Peripheral items, including cash drawers, printers and stands are also available. Sales data is kept in the “cloud” so that it’s easily accessible from any device. In addition, some POS systems, also store sales information locally on the hardware.

Let OMEGA Processing’s POS system offerings help you take your business to the next level. Here’s an overview of our various offerings.

Paradise Point-of-Sale Systems — With both retail and restaurant options, Paradise offers a complete wireless iPad-based POS system. Data is always available on both the local device and in the cloud. Inventory and labor management tools are included, and systems are customizable for your environment. Additional features include EMV and contactless (Apple Pay) capabilities, online reporting and vendor reports. Restaurant features include split checks, pay-at-the-table, tip adjust and menu changes.

RedFin Point-of-Sale Systems — RedFin restaurant POS systems are custom-designed with the optimal hardware and software combination for your business. From fine dining to quick service, REdFin’s versatile EMV payments, menu management, inventory and labor management tools and increased speed of service help your restaurant maximize its operational potential. In addition, online ordering capabilities increase sales opportunities for your business.

Contact OMEGA Processing Solutions at 866.888.9724 for your customized account analysis and product demonstration.


BBB Warns of Email Scams This Tax Season

January 17, 2018

The Better Business Bureau (BBB) is advising businesses and organizations to be aware of Business Email Compromise (BEC) scams that have stolen sensitive employee and resulted in losses of millions of dollars. BEC scams typically involve phony of “spoofed” emails that appear to be from high-ranking company officials that instruct employees to wire large amounts or cash or provide sensitive information such as W-2 wage and tax statements. Thieves use publicly available information to research the targeted organization, tailoring the spoofed or faked email to make it appear that it came from a company executive.

Here are some tips that can help companies and organizations protect themselves from BEC scams:

  • Institute employee fraud-awareness training, including instructions on how to carefully scrutinize email requests and email logs.
  • Implement a policy to require confirmations for all fund transfer requests.
  • Create a solid business continuity plan in the event of a BEC scam.

If you fall victim to such a scam, contact your local FBI office as soon as possible. In addition, contact your financial institution if there has been a wire transfer scheme and the IRS if the event tax information has been compromised.

Scam alert

Vulnerability Scanning vs. Pen-Testing

January 17, 2018

How does a Penetration test Differ from a Vulnerability Scan? The difference between penetration testing and vulnerability scanning, as required by PCI DSS security standards, still causes confusion within the payments industry. Here’s a look at the differences.

Vulnerability Scanning: Fully automated process that identifies potential security gaps used by hackers to attack systems.

Penetration Testing (Pen-Testing): In-depth, manual tests performed by IT security professionals using the same techniques that hackers use. Pen-Testing mimics real-world system attacks and is an advanced security testing technique that must be conducted annually and after any major changes to the computing environment.

Vulnerability scan vs pen testing