Prepaid Cards: Possible Problems Merchants Face When Dealing with These Transactions
Prepaid cards look like credit or debit cards and their way of usage is similar. They are issued by most banks due to their frequent necessity. Today, we can get to see many prepaid cards just like the payroll cards. The Prepaid Card is such card that should be monthly filled with a previously stated sum, in order for the holder to be able to spend from it. Of course, the terms and conditions of each prepaid card depend on its issuing monetary institute.
The Prepaid card has become very popular nowadays because of the lower expectations of toward someone’s financial stability. Unfortunately, credit card frauds are quite frequent to happen. With prepaid cards, yet it does not stop people from acquiring them. The security should be definitely better with the managing of prepaid cards.
Of course, this creates an uneasy situation for the shop owners too. Prepaid card is like a credit card, yet gives also those the chance to have it who could otherwise not afford to have a credit card. Yet as credit cards are a-must when it comes to the shopping of some goods or services online, prepaid cards are used quire frequently.
Of course, every payment with the sole exception of payment with credit cards hide the risk of a possible chargeback on behalf of the customer’s bank in case of one party; either customer or bank not being happy about this transaction. Prepaid cards, just like debit cards also work with a four digit PIN or personal identification code number.
Of course banks, such as shops should always be aware of every old and new fraud methods which keep evolving with time with the same target: to steal money. New frauds can even virtually pretend to fill up a card, while it is all empty. With a prepaid card, you can go down in credit up to a limit, even when you do not exactly have the palpable sum on it.
In many cases though, when a credit card fraud happens, it will be the shop owner, from whom the stolen good was purchased, will be held responsible instead of the bank, which executed the payment. BIN (Bank Identification Number) databases and bin checkers have become great tools for shops to detect the authencity of a bankcard with the help of each card’s BIN number. This way they mean great security measure for every shop to use.
Use the BIN database for verifying someone’s data just like address or just the zip code. This way, you can spot every outstanding difference or details which seem confusing about the card. Bankcard frauds indeed cost a lot for the whole society. With the help of the BIN database, you can stop fraudsters trying their tricks on you. This way, the price of BIN database software is far less in importance or in value, than is the database for you to protect your business against all such attacks.