Corporate cards

How to dispute fraudulent charges on your business credit card?

Apr 05, 2024

Fraudulent charges are financial transactions made using stolen or unauthorized payment information. These charges can occur with credit or debit cards, as well as with other forms of payment such as wire transfers or checks.

Fraudulent charges on business credit cards are a major concern for businesses in Australia. This is because they represent a loss of both money and customer trust.

Not only can fraudulent charges result in financial losses for businesses, but they can also lead to reputational damage if customers feel their information was not adequately protected.

Furthermore, businesses must invest in fraud prevention measures to dispute credit card transaction, reduce the risk of fraudulent charges, and so on which only adds to business expenses.

Common types of fraudulent charges and how to identify them

False charges

If you see false charges appear on your credit card statement then it is likely that charges that you have not made at all have been added to your statement.

This may happen due to a technical or manual data entry error on behalf of the bank providing you with the cards. You can easily fix this issue by reaching out to your card provider.

Unauthorized charges

The unauthorized charges or unauthorized credit card transaction Australia sees usually involves a case where the transaction in question has not been approved or authorized by the owner or controller of the credit card.

Unauthorized charges or credit card transactions will typically be those expenses made by your employees or departments that have not been authorized or approved before the purchase.

Double charges

Double charges are the type of fraudulent charges where one transaction may be charged more than once from your card.

It is easy to identify such charges because you will notice on your credit card statement immediately, they will appear as two or more identical charges made for the same transaction.

Subscription charges

Subscription charges are another type of fraudulent credit card transaction where your card might be used to pay for subscriptions without your prior knowledge.

This may happen if you have forgotten to cancel a subscription you don’t use anymore or even in cases where unknown people might be using your card to pay for subscriptions fraudulently.

Online fraud

Online fraud has become an increasingly common type of fraudulent charge on credit cards. In this type of fraud unsafe websites, online marketplaces, or phishing groups may dupe you into providing your card details.

Once they steal your card information they can easily use it to make any transactions they want and damage your finances critically.

Steps to dispute fraudulent charges on your business credit card

Contact the credit card issuer

The first step to dispute credit card transaction charges that are fraudulent is to contact the credit card issuer. The best way to do this is to call the customer service number listed on your card provider’s online website or the back of the card.

When speaking with the customer service representative, provide all of the information about the transaction that has been charged fraudulently, including the date, amount, and merchant or vendor. The representative will then be able to investigate the fraudulent charge, determine who is responsible for the charge, and proceed with your business card dispute resolution.

Investigation and resolution

Once the credit card issuer has been made aware of the fraudulent charge, the next step involved is to investigate the situation and determine who is responsible for the charge. If the credit card issuer finds that the charge was indeed fraudulent, they will typically reverse the charge and issue a refund for the same amount.

 The credit card issuer may also inform the merchant or vendor of the fraudulent charge, so they can take steps to prevent this from happening in the future.

Follow-up and prevention of charges

After the fraudulent charge has been reversed, it is important to follow up with the credit card issuer to make sure the charge is fully resolved. The credit card issuer may also be able to provide advice on how to prevent future fraudulent charges, such as setting up alerts for unusual activity or increasing security measures.

Additionally, it is important to keep track of all credit card activity and regularly review statements for any signs of fraud. This will help ensure that any fraudulent charges are caught as soon as possible and can be quickly reversed.

Best practices to prevent fraudulent charges on your business credit card

The best practices for preventing fraudulent charges on a business credit card are:

1. Establish a strong internal control system

Develop an internal control system that requires approval from multiple people when making purchases, including a manager and an accountant. This helps to ensure that purchases are legitimate and the appropriate people are aware of what is being spent.

2. Monitor credit card activity

You should regularly review credit card statements and look for suspicious activity. If you see any transactions that don't seem to make sense or are out of the ordinary, contact your bank or credit card company as soon as possible.

3. Set spending limits

Establish spending limits for each user and require approval if those limits are exceeded. This will help to ensure that the only purchases that are made are necessary ones and that company costs are not excessive.

4. Require two-factor authentication

Implement two-factor authentication so that two forms of identification are required to make a purchase. This could be a combination of a password and a one-time code sent to a mobile device, or a combination of a user's fingerprint and a PIN.

5. Utilize fraud detection software

Fraud detection software can help to identify and flag suspicious purchases. This can be especially useful if you have a high volume of purchases or if you have a large number of users with access to the credit card.

6. Educate employees

Make sure your employees are aware of the risks of credit card fraud and the best practices for preventing it. Provide regular training and education on the subject, and discuss it with employees when they are given access to the credit card.

7. Implement a zero-tolerance policy

Clearly state that any fraudulent activity will not be tolerated and will result in disciplinary action. This will help to ensure that all users understand the importance of preventing fraud. By following these best practices, you can help to ensure that your business credit card is used only for legitimate purchases and that any fraudulent activity is prevented.

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Manage your payments with highly secure Volopay business credit cards

The best way to prevent or at least reduce the risk of fraudulent charges on your business credit card is to get a card provider that comes with highly secure features and protection guarantees. Volopay is a great option in this case.

The business cards provided by Volopay to help manage your finances are protected by multiple layers of bank-grade security, and every transaction goes through various security checks to ensure authenticity. Additionally, Volopay comes equipped with a highly advanced, capable, and customizable multi-level expense approval workflow.

You can never be too safe when it comes to protecting your business’s finances. However, what you can do is take the right steps and precautions to reduce the risk or probability of being harmed by credit card fraud. To do this not only must you use a reputable and safe card provider but you must always be aware of the ins and outs of how to dispute credit card transaction.

Make your business transactions secured with Volopay corporate cards