Federal regulations for pawn shops are designed to safeguard customers’ cardholder data and to shield merchants like you from becoming victims of fraud or other criminal activities.
Additionally, the company that provides your merchant account for pawn shops can also furnish you with a point of sale system that gives you even more protection. Take a few minutes to learn how, and you will lower your risk of becoming a victim.
POS systems defined.
Point of sale solutions are combinations of hardware and software that streamline numerous business operations.
At their core, they help you to take payments securely and quickly while simultaneously possessing numerous tools that aid in other back-office tasks such as inventory and employee management, report generation, customer relationships, and more.
These systems also integrate with other programs that you may already be using, including accounting and even fraud protection services.
One of the main POS capabilities is to assist in fostering a comprehensive environment of data safety at every stage of the transaction.
Basic identity authentication.
Because your POS can collaborate seamlessly with other software, you can harness its power at the moment of purchase to provide extra assurance that your customer is who they say they are.
When they provide you with their address, for instance, you can check it against an address verification service (AVS). Furthermore, you can use 3-D Secure as an added authentication layer that clients must navigate before their credit card is successfully processed.
This requires them to further verify their identity by providing a password or biometric identification.
National database integration.
One of the most frequent types of transactional fraud that owners of pawn shops experience occurs when customers attempt to get money for stolen goods.
A high-quality POS for pawnbrokers is cloud-based and connects with a national database that keeps track of the serial numbers of ill-gotten merchandise.
As an owner, you simply enter that number into the system and can immediately tell if something has been red-flagged.
PCI compliance.
The Payment Card Industry Data Security Standard (PCI DSS) is a set of measures set forth by the major credit card companies to protect cardholder data against theft and fraud.
When you partner with a reputable merchant account for pawn shops provider, they will be in compliance with PCI DSS as will all of the hardware and software under their purview.
At one time, pawn shops suffered from a reputation that can be described as shady at best. However, recent technological and regulatory innovations have enabled the industry to gain some well-deserved respect and have enabled businesses like yours to become trusted institutions in communities across the country.
With the help of a modern pawn shop-friendly POS system and a reliable merchant account provider, you can take strong actions to ensure that your store continues to offer solid services with minimal risk of being damaged by transactional fraud.
