Help Article

Ask the Community

Find answers or join the conversation in the Community Help Forum.

Best practices for preventing fraudulent transactions when using PayPal Here

We want to help you avoid fraudulent transactions and protect your business. This is important because you may be held financially responsible if you accept a stolen credit card.  Here are a few tips to help you avoid transaction problems. 

Before a Sale

  • Include a clear return policy on your receipts and invoices. 
  • Create a recognizable card statement name. A customer who doesn't recognize your business name on their card statement may contact their card issuer because they think that the charge was unauthorized. On a card statement, your business name will appear next to the word "PAYPAL*."  Go to your Business Profile to add a return policy to your receipts and update your card statement name.

During a Sale

  • Enter a description for each item that you sell. 
  • Verify the customer's name and signature if you use a card reader. If the card isn't signed, ask for a photo ID. The name on the ID should match the name on the card. 
  • Swipe cards with your card reader. The magnetic stripe has built-in security features.  
  • If you manually enter a card number, make sure to enter the customer's valid billing zip code. 

After a Sale

Keep good records. Hold on to receipts, invoices and other documentation from your sales. Chargebacks can be filed months after a transaction and you'll need documentation to respond to any claims.

Manually Entered Cards

In general, manually-entered card payments have a higher incidence of fraud because the cardholder doesn't necessarily have to be there for the transaction to take place.  Because of this, the transaction fee is slightly higher and payments might not be available for withdrawal right away. We recommend that you swipe cards with your card reader because the magnetic stripe on the back of a card has built-in security features. If you don't have a card reader or you have to enter a card number for some other reason, it's important that you make sure that the customer owns the card.  We recommend that you: 

  • Ask for photo ID if the card isn't signed. 
  • Have customers sign for all purchases, big and small. 
  • Make sure that you enter the customer's valid billing ZIP code. 
  • Itemize sales and enter a description for each item that you sell.
We’re sorry, the page you’re looking for is no longer available. Please try your search again in our Help Centre if you have a question or want to contact us.