Secure Your Swipes in Business

PUBLISHED DECEMBER 2024

When seeking to streamline operations and safeguard against fraud, choosing credit cards over other payment methods for most business expenses can have clear but sometimes overlooked benefits. This includes greater protections, extension of working capital and monetary rewards that can be reinvested.  

Business credit cards can be integrated into existing expense-management practices, with many issuers offering features that complement other banking products or integration with reporting software. Working with a collaborative and responsive banking partner can form a beneficial relationship to avoid fraud and better track transactions.

A strong relationship manager who understands spending dynamics can assist with optimizing payments strategy by balancing payment risk, cost, control and integration. As EFTs all but eliminate the need for traditional paper checks, understanding the full range of digital transactions becomes imperative for business owners and leaders.

Many businesses have a continued reliance on debit cards or checks that can have unnecessary risks compared to credit cards. 

According to the 2024 Association for Financial Professionals “Payments Fraud and Control Survey Report,” check fraud has consistently been the payment method most vulnerable to fraud since the first survey 19 years ago. Meanwhile, the percentage of organizations that experienced payments fraud through corporate and commercial credit cards is falling.

Last  year, 20 percent of organizations were hit by card fraud, a significant decrease from the high 36 percent in 2022.

Business credit cards linked to other business bank accounts offer many conveniences that can simplify daily operations. From flexible credit-line options to travel benefits, low introductory APR, cash-back programs and more, you can choose from a variety of offerings based on specific needs and spending habits. 

However, maximizing the benefits of credit cards also requires educating the work force on proper usage and understanding the ongoing trends related to fraud schemes.

Many credit cards offer $0 fraud liability to holders, meaning the card company will cover loss from fraud. Still, vigilance is important to maintain the security of business accounts. Because there is often a 60-day window to report fraudulent transactions, be sure to review statements on a regular basis.

To avoid falling victim to business credit card fraud, update company passwords regularly and try to avoid making purchases or logging in to credit card accounts while using public Wi-Fi. As a general rule, only give out corporate card numbers over the phone when you initiate the call.

However, there are many other ways that credit cards can be targeted. Fraudsters constantly devise new methods of exploitation. Three of the most common credit card scams:

• Online Shopping Scams: Fraudsters may send links to fake websites that look legitimate but are crafted to fool individuals into providing their credit card or other personal information. Scammers may advertise low-cost business travel fares or limited-time deals on fraudulent vendor websites to create a sense of urgency.

• Phishing: Phishing scams can appear in the form of emails, texts or social media messages that seem to be from a legitimate source, such as a bank or government organization. The messages typically ask the recipient to click on a link or provide personal information, such as their credit card number or login credentials.

• Card Skimmers: Skimmers steal credit card information by placing a device on or near a legitimate card reader, such as an ATM or gas pump. The device reads the credit card information and stores it, allowing the fraudster to retrieve the data later and make fraudulent purchases. 

A reliable banking partner should offer a variety of fraud prevention tools and technologies to help protect a business from credit card fraud:

• Fraud Monitoring Software: Banks can work with card processors and credit card companies to mitigate and stop fraud. This includes identifying scammers by utilizing cloud-based predictive technology solutions to stop fraud before it happens. When a potential fraudulent transaction is discovered, a temporary block is placed on the card and a request for validation sent to the cardholder. The block does not stop the authorization attempt by the fraudster but minimizes potential loss by declining the transaction.

• Chip-Activated Terminals: Chip cards and chip-activated terminals work together to protect in-store payments. A unique one-time code is generated behind the scenes for the transaction to be approved, a feature that effectively reduces counterfeit fraud. 

• Implementing proactive measures is essential to safeguarding your company’s finances. A simple conversation with a trusted banking partner can not only create advantages but possibly prevent future issues related to fraudulent transactions that only increase the value of a potential switch. 

Business credit cards can add significant value to transactional framework, and you shouldn’t delay in exploring the associated advantages and opportunities just because a current setup feels comfortable and adequate.