Remember in 2013 Target had a system breach and credit card numbers were stolen? This is a piece of the article written on March 19th , 2015 in the NY Times…
A federal judge on Thursday gave preliminary approval to a $10 million settlement of a lawsuit brought by customers of Target, which experienced an online attack involving confidential customer data during the holiday season in 2013.
According to documents filed with the United States District Court in Minnesota this month, shoppers affected by the breach could be awarded up to $10,000 each in damages.
Full article: https://www.nytimes.com/2015/03/20/business/target-settlement- on-data- breach.html
The responsibility of the breach falls on the business, in this case, Target. They failed to protect the credit card information of their customers and since it is a privilege to accept credit cards as payment, they were fined heavily for the breach.
The line I want you to focus on is the last one;
“Shoppers affected by the breach could be awarded up to $10,000 each in damages.”
If a credit card number gets stolen from your business for whatever reason, and it is used fraudulently, your business is liable for every occurrence. That could easily be $10,000, multiplied by the number of cards compromised. How long could you stay in business if that happened just ONE time?
You need to be educated on how to protect your business from something like this. Please don’t assume that hackers or thieves only target large businesses. Small businesses get hacked every day, often times because it’s easier to do so. Regardless of the fact that they should know their liabilities, small business owners are often unaware that these types of fines can be levied against them.
Are you one of those owners? If you feel you aren’t educated enough about what can happen to your business, contact me right away! 15 minutes could save you on your car insurance, but in the same 15 minutes you could learn enough to protect your business from hefty fines totaling more than you’ll pay for insurance in your lifetime. Maybe even bankruptcy?
Here are a couple Do’s and Don’ts of taking credit cards:
Do – Swipe credit cards (or use the chip) whenever possible since it guarantees you’re getting the best rate and there is virtually no chance of that card number being compromised.
Don’t – Hand key in a transaction unless absolutely necessary. By hand keying your card number, the chance of fraud and chargebacks increase exponentially which exposes you and your company to fraud.
Do – Check ID’s every chance you can and write that on the receipt that you keep. (ID)
Don’t – Write down credit card numbers or store credit card numbers on a laptop or office computer.
Do – allow your customers to pay with ApplePay or GooglePay. It’s by far the safest and most secure way of accepting credit cards.
I f you are still uncertain, give me a call. We can chat and see if you are SAFE and protected.
I am, Ed Craft, your credit card guy, but you can call me, The Credit Card Answer Man.