Card, electronic payment fraud on the rise
As credit card and electronic payment fraud persists, more businesses may find their clients are taking care of their bills with other payment methods, making it essential for them to have the right check processing equipment. More customers may reduce their use of credit cards and electronic payments and instead choose to use to checks to pay their bills.
Businesses may turn to checks amid credit card risks
The 2013 Association for Financial Professionals (AFP) Payments Fraud and Control Survey revealed 61 percent of respondents had been subject to actual or attempted fraud when conducting business-to-business transactions, a number that increased since the 2012 poll. The average financial loss from such problems was not insignificant and added up to $20,300. This amount could make a big difference in a company's financial situation, especially when the business experiencing fraud is a smaller firm.
The level of fraud doesn't appear to be dropping - 27 percent of organizations impacted by such attempts noticed more in 2013 than they had in 2012. This is especially prevalent among companies that make payments with credit cards. Twenty-nine percent of respondents said their business had been the victim of corporate or commercial credit card fraud, compared to just 20 percent in 2011.
Not only are the risks of corporate credit card payments up, the financial repercussions that go along with them have also jumped. Twenty-six percent of companies that reported card fraud suffered financial losses while only 16 percent that experienced check fraud said the same.
What does this mean for businesses accepting payments from clients?
This climbing rate of credit card payment risks and the significant financial losses they carry may make some business leaders think twice about shifting from checks to cards and may even influence some companies with established histories of paying bills via plastic to make the switch to checks.
In order to effectively cope with the growing number of clients who may choose to rely on checks rather than electronic payment methods, businesses may need to adjust their payment processing strategies and prepare for a decrease in credit card and electronic bill pay options. This makes having alternative options, like the right check scanner, even more critical so firms can accept the money they are owed and handle payments quickly and efficiently.