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PayPal Here: Help protect yourself against credit card fraud

Key Facts

  • The best way to help protect yourself against fraud is to swipe the card through your PayPal Here card reader.
  • Enter the customer’s zip code to help protect yourself against fraud.

Although PayPal works aggressively to help prevent fraud, it’s still important for you to know how to help protect your business.

Why fraud prevention is important

  • If you received a fraudulent payment, you could be held financially responsible for the loss.
  • Nobody knows your business as well as you. You know your biggest customers and are familiar with their buying patterns. Because no payment processor will ever surpass your knowledge in these areas, your involvement in fraud prevention is essential.

Learn how to help protect your business

Swipe the card. The best way to help protect yourself against fraud is to swipe the card through your PayPal Herecard reader instead of manually entering the card number. Swiping cards reduces your chances of fraud since the magnetic stripe includes built-in security features that are not available for manually entered transactions.

  • Phone payments: If you typically accept payments over the phone, Virtual Terminal may be a better choice for your business. It was specifically designed for businesses that take payments over the phone, fax, or mail order.
  • Keyed and scanned payments: When you manually enter card numbers, the transaction fee is slightly higher and payments that you receive may not be available right away. To help protect yourself against fraud, enter the customer’s zip code.

Verify the signature. Make sure the customer’s signature on the sales receipt matches the card signature and the name on the front of the card.

  • No signature: If the card isn’t signed, ask for a driver’s license or other photo ID to help verify the customer’s identity. Next, ask the customer to sign their card. The name on the ID should match the name on the card.

Ask for driver’s license or photo ID. If a customer is placing an unusually large order or you suspect that a card might be fraudulent, ask for the customer’s ID. The name on the photo ID should match the name on the card.

  • No driver’s license: Ask the customer for another form of ID. If you can’t afford a potential loss and the order seems suspicious, consider declining the sale.
  • Photo ID doesn’t match: If the name on the ID doesn’t match the name on the card, consider declining the sale. For your safety, stay calm and don’t tell the customer that you suspect fraud. Instead, just let the customer know you can’t accept the sale.

Post your return policy. Post your return policy in a visible place in your store so customers can read it before they pay for their orders. Also include your return policy on the sales receipt. If you’re using the PayPal Here app, you can include your return policy on your printed receipts. To set this up, just go to your app Settings and select “Printing.”

  • Invoice: If you don’t have a physical store, you can include your return policy on your invoice. The invoice should also include the date, description of the item or service, number of items purchased, amount, and customer’s signature.

Verify your credit card statement name. Make sure customers can recognize your business name on their debit or credit card statements. If customers don’t recognize a charge on their statement, they may think that the charge was fraudulent and open an unauthorized chargeback. Verify your credit card statement name.