Protecting Against Fraud

A strong fraud strategy starts with prevention, continues with early detection, and ends with real protection for your business. With Redde, we work alongside you as your eyes and ears, helping identify risks, spot unusual activity, and put safeguards in place before problems escalate. The goal isn’t just to respond to fraud, but to reduce it upfront so you can process payments with confidence.

PCI Compliance

Credit card fraud prevention always starts with PCI compliance. If your business accepts electronic payments, meeting Payment Card Industry security standards helps protect cardholder data and reduces your overall risk of fraud. It’s the foundation for keeping both your business and your customers secure.

Fraud Monitoring

Our team of analysts actively reviews your account’s transactions to spot potential fraud patterns early. This includes things like card testing, unusually high-ticket purchases, or other activity that doesn’t match your normal processing behavior. By catching these trends early, we can help you take action before they turn into larger issues.

Chargeback Detection

With Redde, we help flag potential chargebacks before they’re officially filed by a customer. This early warning gives you time to step in, address the issue, issue a refund if appropriate, or resolve the situation directly with the customer. Catching chargebacks early can help you reduce disputes, protect your account, and avoid unnecessary fees.

Fraud Prevention Tips - (In-person transactions)

Preventing Fraud for POS Solutions

1. Keep receipts or an itemized list of all transactions
Always keep receipts or detailed records for every transaction you process. These records are critical if a customer disputes a charge or claims they didn’t make a purchase. Having clear documentation makes it much easier to defend chargebacks and show proof of a legitimate sale.

2. Document customer purchases
Make note of what was sold, when it was sold, and how the payment was processed. Clear purchase documentation helps establish a paper trail that connects the customer to the transaction. The more details you have, the stronger your position if fraud or a dispute arises.

3. Understand and know all your equipment, including your POS system
Know how your terminals and POS system are supposed to work and what normal behavior looks like. This helps you spot unusual prompts, error messages, or processing behavior that could signal a problem. When staff understand the equipment, mistakes and fraudulent workarounds are far less likely.

4. Do not accept “Letters of Authorization”
Letters of authorization are not a valid or secure form of payment approval. Fraudsters often use them to bypass proper card verification and shift risk onto the merchant. Accepting them can leave you fully liable if the transaction is disputed or charged back.

5. Be cautious when manually entering worn or damaged cards
Manually entering card numbers increases risk because it bypasses key security features like chip verification. Worn or damaged cards are sometimes used to hide stolen card information. If manual entry is necessary, take extra steps to verify the customer and transaction details.

6. Keep an eye on customers that may be distracting or appear agitated
Fraudsters often try to rush or distract staff to avoid proper checks. Agitated behavior, pressure to move quickly, or attempts to break your normal process are red flags. Staying calm and following standard procedures helps prevent costly mistakes.

7. Be attentive to customers who keep their credit cards separate from their wallets
Customers who pull cards from pockets or separate holders may be using cards that aren’t theirs. While this alone doesn’t confirm fraud, it’s a behavior worth paying attention to. Combine this observation with other signs before proceeding with the transaction.

8. Educate all your employees on fraud signs
Fraud prevention only works when everyone knows what to look for. Regularly train staff on common fraud tactics, red flags, and proper payment procedures. An informed team is one of the strongest defenses against card-present fraud.

9. Always ask for identification and compare signatures
Requesting ID and checking signatures adds an extra layer of protection for higher-risk transactions. Compare the signature on the card, receipt, and ID to ensure they match. Taking this small extra step can prevent unauthorized use and strengthen your case if a chargeback occurs.

10. If you are ever unsure or need advice - contact us!

Do’s & Don’ts at the Register

✅ DO

• Follow normal checkout steps, even when it’s busy
• Keep receipts and itemized transaction records
• Pay attention to customer behavior and red flags
• Verify IDs and compare signatures when needed
• Ask a manager if something feels off

❌ DON’T

• Rush transactions because a customer pressures you
• Accept handwritten authorizations or “letters of approval”
• Manually enter card numbers unless absolutely necessary
• Skip verification steps to “move the line faster”
• Ignore your instincts. If it feels wrong, pause the sale

Remember:
Fraud often relies on speed, distraction, and pressure. Slowing down protects the business and your job.

Staff Training Guide

Fraud prevention starts at the register. Every employee plays a role in protecting the business, even during routine transactions.

Always follow standard payment procedures, even when the store is busy or a customer pressures you to move faster. Skipping steps like verifying cards, reviewing prompts, or checking identification can create unnecessary risk. Fraud often relies on distraction, urgency, or confusion.

Be aware of behavioral red flags. Customers who seem overly agitated, attempt to rush transactions, or distract staff may be trying to bypass normal checks. Cards pulled from pockets instead of wallets, damaged cards that require manual entry, or unusually large purchases should prompt extra attention.

Finally, documentation matters. Receipts, itemized purchases, and clear records help protect the business if a dispute or chargeback occurs. When in doubt, slow down, verify the transaction, and ask a manager for support. It’s always better to pause a sale than deal with fraud later.

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Fraud Prevention Tips - (Online transactions)

Preventing Fraud For Card-Not-Present Sales

1. Pay close attention to the time of day the order was made and the email address used
Orders placed late at night or outside normal business hours can sometimes be a red flag. Look closely at the email address as well. Random strings of letters, mismatched names, or free domains paired with high-value orders may warrant extra review.

2. Be cautious of expedited shipping when billing and shipping addresses are different
Fraudsters often request overnight or expedited shipping to receive goods before fraud is detected. When the billing and shipping addresses don’t match, the risk increases. Take extra steps to verify these orders before fulfilling them.

3. Be cautious with first-time shoppers
First-time customers aren’t automatically risky, but they do deserve a closer look. Review their order details, payment method, and shipping information carefully. Many fraudulent transactions occur on the first purchase.

4. Make sure you use Address Verification (AVS) for all online orders
AVS checks whether the billing address matches what the card issuer has on file. A mismatch doesn’t always mean fraud, but it should prompt further review. Using AVS helps reduce unauthorized card use and strengthens your fraud defenses.

5. If you’re ever in doubt, ask for more identification
If something feels off, it’s okay to pause the order and request additional verification. This could include a copy of ID, confirmation of billing details, or a follow-up email or call. Legitimate customers usually understand, while fraudsters often disappear.

6. Check if the mailing address is a mailbox or forwarding service
Mailbox stores and forwarding services are commonly used in fraud schemes. While they aren’t always suspicious, they should trigger extra scrutiny. Combine this check with other signals before approving the order.

7. Be cautious of customers trying to rush or overnight orders
Urgency is a common fraud tactic. Requests to “ship immediately” or pressure to bypass normal review steps should be taken seriously. Slowing down and reviewing the order carefully can prevent costly mistakes.

8. Set purchase limits whenever possible
Purchase limits help reduce exposure if fraud does occur. Setting caps on order amounts or quantities limits potential losses. These limits can always be adjusted as your business grows.

9. Use tracking numbers and require signatures for delivery
Always ship with tracking so you can confirm delivery. Requiring a signature adds an extra layer of proof and can be critical if a chargeback is filed. This protects both your product and your revenue.

10. Always require the Security Code (CVV)
CVV helps confirm that the customer physically has the card. Transactions without CVV verification are much riskier and harder to defend. Requiring it should be standard for all card-not-present sales.

11. Make sure the IP location and billing address match
A mismatch between IP location and billing address can indicate fraudulent activity. While travel or VPNs can cause differences, large discrepancies deserve closer review. Use this as part of your overall risk assessment.

12. Be cautious of orders with multiple identical items or high-ticket products
Fraudsters often buy multiple high-value items to maximize profit before detection. Orders with large quantities of the same product or unusually expensive items should be reviewed carefully. These patterns are common in fraud cases.

Do’s & Don’ts for Online Sales

✅ DO

• Use AVS and require CVV on every transaction
• Review billing and shipping addresses carefully
• Pay extra attention to first-time and high-ticket orders
• Use tracking numbers and require signatures on delivery
• Pause and review any order that feels rushed or unusual

❌ DON’T

• Ship orders before verification is complete
• Ignore address mismatches or IP location red flags
• Rush expedited or overnight shipping requests
• Approve large or bulk orders without review
• Assume fraud “won’t happen to you”

Remember:
Online fraud thrives on speed and assumption. Slowing down and double-checking details can save you from chargebacks and lost inventory.

Staff Training Tips

Online and keyed-in transactions carry more risk because the card isn’t physically present. That means details matter. Employees should always review order information carefully, especially for first-time customers or high-value purchases.

Fraudsters often rely on urgency, rushed shipping, or incomplete verification to succeed. Slowing down, following standard checks, and verifying details like AVS, CVV, IP location, and shipping addresses can stop fraud before it happens.

When in doubt, pause the order. Request additional information or escalate to a manager. It’s always better to delay a shipment than deal with chargebacks, lost merchandise, and account risk later.