A story in the NY Times on July 25th reported that a gang of hackers stole and sold 160 million credit card numbers from more than a dozen companies. The crime originated out of Russia and the Ukraine and caused hundreds of millions of dollars in losses.
Criminals have become very sophisticated and you need to be vigilant that your credit card or your personal information is not being used for fraudulent activity.
In previous posts we discussed the importance of protecting cardholder data. As a business owner, you are also a consumer ... so what should you do if YOUR credit card information is compromised?
Report the Loss or Theft Immediately
- Act fast to limit your liability for charges you did not make
- Most companies have a toll-free number and 24 hour service to report stolen cards
- Once reported, you cannot be held liable for any other unauthorized transfers/purchases after you report the issue
- Follow up with a letter or email
- Check your statement carefully
- Check to see if your homeowner’s or renter’s insurance covers the liability
What is your maximum liability?
If someone does use the stolen credit card before you report it, you may still have some liability. Here are the thresholds of liability:
- If you report the card loss before any unauthorized charges are made, your liability is zero
- If you report within 2 business days after you learn about the loss, your liability is $50 maximum
- If you report the loss more than 2 business days but less than 60 calendar days, after your statement is sent to you, your liability is $500 maximum
- If you report more than 60 calendar days after your statement is sent to you, then you are liable for all money taken from your account and possible more (money in accounts linked to your debit account)
How to Protect Your Cards and Account Information
For Credit and ATM or Debit Cards
- Don’t disclose your account number over the phone unless you initiate the call.
- Guard your account information. Never leave it out in the open or write it on an envelope.
- Keep a record of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly.
- Draw a line through blank spaces on charge or debit slips above the total so the amount can’t be changed.
- Don't sign a blank charge or debit slip.
- Tear up copies and save your receipts to check against your monthly statements.
- Cut up old cards — cutting through the account number — before you throw them away.
- Open your monthly statements promptly and compare them to your receipts. Report mistakes or discrepancies as soon as possible.
- Carry only the cards you'll need
A final piece of advice – protect your PIN carefully if using ATMs or Debit Cards. Don’t carry the PIN with you (or on your phone).
For more information on protecting yourself and your identity, visit http://consumer.ftc.gov.
About Novera Payment Solutions
Novera Payment Solutions is well known as a leader in the credit card payments industry and is committed to helping businesses improve their bottom line by providing significant savings on credit card processing fees through our innovative flat fee merchant account pricing model.
Novera Payment Solutions Advantange
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Novera Payment Solutions's consultative approach allows us to thoroughly educate our clients, equipping them to better understand this complicated industry.
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We take the mystery out of the credit card processing business.
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We work with all types of businesses across the country.
Contact Novera to learn more about how we work with businesses to provide the most fair and transparent pricing structure available on the market today for credit card processing.
