Research in the retail industry suggests that a significant number of businesses each year are victims of payment fraud, and that theyâ€™d suffered cash losses as a direct result.
As well as the monetary impact, they suffered other consequences such as lowered staff morale and had a negative influence on client relationships.
Payment fraud can be difficult to detect â€“ most business owners want to assume payments for their goods or services are legitimate. Because there are a number of ways to commit payment fraud, itâ€™s vital that business owners are aware of them.
Get your small business customers to keep an eye out for people trying to return products they didn’t buy from them, stolen credit cards, counterfeit money and bad checks.
As in most cases, preventionâ€™s always better than a cure. Chasing up dodgy people is time-consuming, stressful and not always successful. Itâ€™s far better to have measures in place to prevent payment fraud happening in the first place.
Xero has a good article on protecting a business from payment fraud that’s worth sharing with your small business customers.