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Payment Gateway: Top 6 Fraudulent Credit Card Costs That Merchants Should Avoid

by Trisha Echols If you are a store owner, you want to avoid costly expenses as much as possible. These are called liabilities. And too much expense liabilities could cost your business. Therefore, paying for a little service in order to be protected against bigger and totally unnecessary expense risks makes good business sense. This is the underlying principle behind payment gateway services. It offers business owners financial protection. Merchants who subscribe to a good payment gateway service company are spared from financially debilitating losses resulting from these transactions. Listed below are among the top fraudulent credit card transaction costs that business owners should avoid : <ol><li>PURCHASED ITEMS' COSTS Store owners and online shops who accept credit card payments comprise the most vulnerable targets for fraudulent credit card transactions. Without a payment gateway service, customers with fake credit cards will be more likely to complete the purchase successfully. And as you can see, this transaction entails big financial losses. Merchants will have to shoulder the costs of items purchased through fraudulent credit cards. </li><li>DELIVERY COSTS This loss involves shipping costs, parcel-delivery fees, postage stamps,door-to-door delivery and other similar charges. Merchants stands to lose big, especially in overseas delivery. This delivery costs are more prevalent in online credit card transactions than a face-to-face card purchase transactions. </li><li>CARD COMPANIES' PENALTY COSTS When a fraudster uses a cloned or stolen credit card, the transaction will be reflected in the real credit card owner's monthly bill payments. He or she will surely dispute the fraudulent purchase. This will result to chargebacks. When you, as a merchant, incur accumulated chargebacks, the card companies will then impose you a penalty fee. This is another totally unnecessary expense that merchants have to bear. </li><li>MERCHANT BANK'S COSTS The penalty of chargebacks does not stop at card companies. It extends way up to the banks. Merchant banks, for all intents and purposes, also impose penalty charges to merchants who have too many chargebacks to their accounts. Worse, you can lose your merchant account and have your reserve fund put on hold till you settle all your financial obligations. </li><li>MANHOURS PROCESSING COSTS With disputes from fraudulent credit card transactions, merchants have to spend hours processing and refuting the chargebacks. Such amount of time could have been spent in more productive endeavors enhancing their business. Again, another unnecessary costs against the poor, harried merchant. </li><li>CONFIDENCE COSTS Fraudulent credit card transactions hurt and always costs the merchants directly and indirectly. Among the indirect cost is the loss of confidence among the merchant's customers. His reputation gets ruined. No one will want to do business with a merchant with bad reputation. Customers will avoid him and his establishment. Eventually, his business will go down. Bad reputation takes on a very high price! </li></ol> Legitimate expenses comes with establishing business. But with these ever-increasing fraudulent credit card costs, it's a good idea to get a payment gateway service protection. The right payment gateway service from a reputable payment gateway company could spare you from all these fraudulent and completely unnecessary financial costs. ( Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. She does lectures on strategic business practices and also writes for various magazines on business matters.)  <a href="http://www.onlywire.com/submit?u=http://www.securepaymentgateways.com/payment_gateway_top_6_fraudulent_credit_credit_card_costs_that_merchants_should_avoid.html;t=payment%20gateway;tags=payment%20gateway" target="_blank" title="Add this Article to Onlywire"><img src="http://www.onlywire.com/i/onlywire.ico" alt="" />Add to Onlywire!</a>

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