How can US merchants prevent fraud with tap to pay?

[nikkismith815]

How will us merchants be protected fro fraud if we let customers use tap to pay? 

[Shay]

Hi @nikkismith815 

Keeping your business safe from fraudulent activity is always important! Using tap to pay is a quick and efficient way for customers to complete checkout. As a business, you always have the right to refuse service to a customer or ask for identification to confirm ownership of a credit card before use. 

The security of who is using the card itself is on the customer to maintain and the business to enforce. If you are concerned about an increase in chargebacks I would consider a third party chargeback insurance system, use surveillance if accepting payments in your place of business, and ensure accurate bookkeeping as evidence in case of a fraudulent chargeback. 

[Beacon-Jason]

Hi @nikkismith815!

Jason here with Beacon fraud protection,

To simply answer your question, no, you will not be protected if the customer decides to files a chargeback later. The good news is the likelihood of this is quite low as it requires the person to be in-store and present for the tap to pay transactions.

If you have in-store surveillance, you have evidence of theft which you can use to file a police report and then press charges.