Major risk involved in merchant services

From: netregistry.com.au

Merchant services have various types of merchants and Fraud is definitely a risk for merchants. However, it is important to remember that these risks are mitigated through sound business practices, just as they do for regular shop fronts. It is critical that all customers are accurately identified as the credit card processing systems are designed to protect the cardholder in the case of fraudulent usage. Credit cards were originally designed for face-to-face transactions where the shop merchant could prove that the customer was in the shop with a signature or magnetic swipe of a card. Under no circumstance should goods be sent unless the merchant knows with certainty that who the purchaser is.However, it is important to note that the majority of e-Commerce credit card fraud worldwide is perpetuated by staff of merchants. Hence it is imperative that all merchants fastidiously protect cardholder and transaction details. Basic business rules of restricting access to this information and employing risk management systems such as the Visa Account Information Security programmer will substantially minimize this.