Avoiding Business Scams
Small investors and individuals aren’t the only targets of scammers. Business owners who sell expensive products (like vintage champagne) are becoming the choice target of thieves using stolen credit cards. The potential victims don’t necessarily sell their products via the Internet, but instead, are being enticed into the scam by email inquiries. The business owner accepts the offer and the credit card payment. The buyer may pick up the merchandise or have the business owner ship the product and only after the product is gone, the seller is hit with a charge reversal when the card theft is discovered.
Here are a few tips to help business owners avoid being taken advantage of.
If you’re selling a high-value product, simply be more aware that you may be targeted by scammers. Examine large sale requests carefully and verify that the buyer is using a valid name and address. Ask for identification when completing a sale.
If you’re asked to deliver (or ship) the product, check out the location where the goods are to be delivered. If the receiving location is a warehouse or other unlikely delivery location for the goods you’re selling, don’t complete the sale.
If you accept credit cards for payment, use an address verification service. If the delivery address doesn’t match the address on the account, the sale will be flagged as suspect. If an unknown buyer wants to place a large order, don’t accept a credit card payment for a first-time order.
If the transaction seems suspicious to you, don’t agree to deliver the product immediately. Waiting as little as 24-48 hours may provide enough time to uncover a fraudulent credit card transaction. Also, before you deliver the product, contact your merchant account provider to see if they can verify that the transaction is legitimate.
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