Protecting Your Building Supplies Business: Best Practices for Accepting Credit Cards in Card-Not-Present Transactions

Accepting credit cards is an essential part of doing business in today's economy. However, with the rise of Card-Not-Present (CNP) transactions, building material dealers and suppliers face new risks and challenges when it comes to accepting credit cards.

Card-Not-Present Risks

A CNP transaction is any transaction in which the credit card is not physically present at the point of sale. This can occur in a variety of situations, such as when a customer places an order online, over the phone, or by mail. The main risk associated with CNP transactions is credit card fraud. Criminals can obtain stolen credit card information and use it to make unauthorized purchases, knowing that the card will not need to be present to verify the transaction. This can result in chargebacks, which can be costly and time-consuming for the merchant.

Best Practices

So, what are the best practices for building material dealers and suppliers to mitigate the risks brought about by CNP transactions? Here are a few important methods to consider implementing at your business:

1. Use fraud detection tools. Many payment processors offer fraud detection tools that can help identify suspicious transactions and flag them for further review. These tools can help catch fraudulent transactions before they result in chargebacks.
2. Implement strong security measures. It's important to use strong passwords and multi-factor authentication to protect against unauthorized access to your payment systems. You should also ensure that your website and payment pages are encrypted with SSL/TLS to protect against data breaches.
3. Verify orders. When processing CNP transactions, it's important to verify the order, especially large ones, before shipping the product. This can include verifying the shipping address and contact information provided by the customer.
4. Have a clear refund policy. Having a clear refund policy in place can help reduce the risk of chargebacks. Make sure your policy is clear and easy to understand for customers.
5. Keep up-to-date with industry standards. The payment industry is constantly evolving, and it's important to stay up to date with the latest best practices and standards for accepting credit cards. Subscribe to newsletters in the LBM industry and make an effort to review other suppliers’ policies.

By implementing these best practices, building material dealers and suppliers can mitigate the risks associated with accepting credit cards for CNP transactions. By doing so, they can continue to provide a convenient and secure payment option for their customers while protecting their business from fraud and chargebacks. At BlueTape, we understand the importance of secure and reliable payment processing for building material dealers and suppliers. Contact us today to learn more about our payment solutions and how we can help protect your business while providing a seamless payment experience for your customers.