Business Credit Card Fraud: How to Protect Yourself and Your Brand

Business credit cards are given out to both small and big brands. Unlike personal credit cards, business credit cards are intended to be used by companies. This will help them build a credit profile to help them earn better terms while borrowing in the future.

While the personal cards come with consumer protection services, the business variants come with special perks to help brands out. 

But just like personal credit cards, businesses are also susceptible to credit card fraud. In this blog post, you will learn about business credit card fraud and how you can protect your company from its consequences.


How Does Credit Card Fraud Affect Businesses?

While a fraud against an individual would have implications against them alone, a business has multiple stakeholders involved. The consequences of fraud can harm a lot of people in the process. Here are some of the ways in which card frauds affect businesses: 

Company Funds Stolen 

One of the first consequences of credit card fraud is the depletion of company money. Unauthorized transactions can financially cripple the business in question. As a result of the stolen funds, it becomes difficult to make inventory transactions. 

Also, other vital operation costs such as employee salaries, marketing expenses, rent, and vendor payments are shelved. With a lack of funds to operate on, the growth of the business is hampered massively. 

Company Reputation Damaged 

Since the company is operating on limited funds, the quality of services often declines. There is a delay in making routine payments as well. This reduces the credibility of the brand and negatively affects its reputation. 

Clients and vendors are unwilling to rely on your brand due to the poor standard of operations, and your business relationships are also compromised.

Company Professionals Suffer 

If there is a massive financial loss as a result of the fraud, you will be unable to pay your employees. Moreover, financial stakeholders need to deal with losses in the investment they made in your brand. The negative ROI will make it very difficult to revive your brand reputation. 

How to Avoid Credit Card Fraud in Business

To avoid all these negative impacts, you can take a number of steps to protect yourself against such frauds. Here are some of the measures that you can start taking today: 

Regularly Review Statements 

To keep track of all financial statements to ensure that everything is accounted for. There should be no suspicious or unfamiliar transactions on the financial records. This way, you are aware of where the money is going and that the funds are accounted for. 

Keep Details Secure 

Ensure that the physical credit card is stored in a secure location. You should never disclose the details to a source that isn’t trusted. The strip reader should also be protected so that fraudsters cannot use skimmers to retrieve the card data. 

Limit Access to Business Credit Card 

Not everybody needs to have access to a business credit card. If staff members need to have access to it, you can place limits on their allowance. Remember that the fewer people have access to the card, the less vulnerable the company is to fraud. If necessary, restrict access to people in higher posts that are trusted. 

Be Careful While Accepting Orders 

Always be watchful of the details of the orders that are placed. In the case of an e-commerce company, it is important that you verify the details of the purchase. This ensures that fraudsters do not get away with using stolen credit card information. In particular, you should look out for the billing and shipping address of the order. 

Update Passwords Regularly 

Ensuring that you use a complex password that not everybody has access to is the best way to protect your business credit card. Updating the password regularly minimizes the likelihood of hackers breaking into your account. 

Conclusion 

There are a lot of unwanted consequences of suffering from business credit card fraud. To avoid them, you should actively take measures to protect your brand. Start by implementing the easy steps discussed in the article today. Mesh Payments can help you ensure that your brand is protected from fraud. Consider choosing our services to maximize security measures for your business.

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