(Originally posted at: http://www.insurancestylist.com/blog/fight-back-against-unfair-chargebacks)
As most small business owners know, accepting credit cards is a necessity in today’s competitive and fast-paced environment. Technology makes it easier than ever to accept payments from your customers.
You can even use your cell phone or tablet if your business is mobile. While credit cards can be great for ease, they do pose some cons for business owners when it comes to fees—specifically chargebacks.
Chargebacks were originally designed to protect customers from fraud. Unfortunately, chargebacks are sometimes used for “friendly fraud”. This type of fraud occurs when a customer receives a product or service, but contacts the credit card company to complain that the item was never received or they never made the charge. The credit card company will investigate the complaint and refund the customer if they find in his or her favor. If the complaint is found in favor of the seller, the business will still be charged a fee for the investigation. A January 2016 study found that 80% to 90% of successful chargebacks were resolved in favor of the customer.
Customers sometimes have valid complaints about products and services that do warrant a chargeback situation, but what happens when your business requires appointments to book services and your customer is a no-show? Businesses such as salons, automobile repair shops, and hotels often have to deal with this very issue. Many businesses need to know the number of customers they will serve in a given day for planning and staffing purposes. When a customer doesn’t show up for an appointment, it is the business that has to deal with lost revenue. Many service industries require notice when a customer is not able to make an appointment or reservation. For example, many hotels will charge the equivalent of a one-night stay if the customer doesn’t give a 24-hour cancellation notice. Salons and spas often charge a cancellation fee for the same reason. This practice makes sense for many service-oriented businesses, because without notice you are not able to rebook the time slot or date with another customer.
The problem is that many customers call their credit card companies to dispute these cancellation fees. Here are a few ideas to help you avoid getting stuck in this situation and to fight back against unfair chargebacks:
Chargebacks can be a frustrating battle—especially when your business is appointment or reservation based. Hopefully with these tips you will be able to cut down on hassles and find a little more peace when dealing with customer credit card disputes.
https://www.nerdwallet.com/blog/credit-cards/credit-card-chargebacks/Entrepreneur Magazine, November 2016. Page 20-21
This post was written by Deidre R., a Product Analyst in the Commercial Lines Marketing Department at Acuity. Deidre’s experience also includes nine years as an Account Manager at an insurance agency. She received her bachelor’s degree from St. Norbert College in De Pere, Wisconsin, and her master of organizational behavior from Silver Lake College in Manitowoc, Wisconsin. Her hobbies include volunteering and event planning for a local women’s shelter, yoga, crafting, reading, and biking. She also enjoys spending time with her husband and dog.
Did You Know Hackers Can Infiltrate Your Network Via Fax Machine?
Fax machines seem to be a thing of the past for many new age businesses and professionals these days, but in reality, they’re still being used. In fact, according to Jive, more than 46 million businesses still use fax machines in some way or another. Typically businesses are still using fax machines because their clients still use them, potential government regulations or industry standards, proof of paper trail, convenience, and in some instances, fax machines are more secure.
However, an Israeli cyber security firm, Check Point, recently discovered that hackers may be infiltrating businesses networks using just a fax machine number…which might not even be connected to the internet. The researchers at Check Point demonstrated that a hacker can execute a script that targets the victim’s fax number in order to obtain network access. According to the researchers, the attacker can then use EternalBlue, a NSA-developed exploit leaked by the Shadow Brokers hacker group, to further infiltrate the network and execute malware.
Using the malware executed for this attack, the hacker can search and exploit specific information about the victim and send it back to the hacker’s fax machine. Additionally, the hacker can severely manipulate what gets sent and received. For example, if the victim sends sensitive account information to their bank, the cybercriminal can program the fax machine to send a copy to the attackers fax machine. The attacker can also tamper with the content included on the document being sent by altering the information to include or exclude what they to be attached to the document.
It’s worth noting that having a cyber security insurance policy in place will protect your business in the case that your fax machine does get exploited by hackers. Contact Jon Jepsen at SentryWest Insurance for a cyber insurance quote.
(Courtesy Evolve MGA https://evolvemga.com/fax-machines/?ct=t)
What happens in a WTF attack?
Hackers manipulate senior executive officers, employees, or clients with the intention of tricking the business or their client into wiring money into the hacker's bank account. Common hack attacks that result in wire fraud consist of stealing login credentials via phishing or key-logging malware, financial data manipulation, and corporate identity theft.
Claims Example: Midsized Trucking Company
In 2017, a trucking company's CEO had his email address compromised. An email was sent to wire money to an existing client, but with new bank account details. The CFO merely thought the client opened up a new bank account and trusted the email from the CEO, which was actually written by the hacker. One payment of $73,000 was wired out without being caught. On the 2nd wire request, they figured out that the figured out the money hadn't been received. Unfortunately, that first payment of $73,000 was unrecoverable.
How Can I Make Sure My Cyber Policy Covers Me?
Check the policy wording to determine if there is coverage for: social engineering, funds transfer fraud, cyber deception, electronic crime, or eCrime. Note the limit provided. Make sure there are no dual factor authentication warranties in the policy wording. If you are looking to ensure that you have quality cyber crime options, please contact Jon Jepsen at SentryWest Insurance.
Jon Jepsen, CIC