Most franchise restaurants think that their credit reports are a perfect reflection of their financial history but that is rarely true! Credit reports of franchise restaurants are often riddled with errors: incorrect addition of accounts, missing accounts, and misspelled names being some examples of this.
While it is a legal obligation for credit bureaus to correct errors in credit reports when they find them, these errors typically go unnoticed for several years. Depending on the severity of these errors, the mistakes in your credit reports can cause little to a lot of damage to your franchise restaurant’s financial well-being especially if they go unnoticed for some years. For this reason, it becomes imperative for you to avoid credit verification mistakes that could potentially hurt your franchise restaurant.
Franchise restaurant owners often ignore the verification of credit card processing when trying to keep their expenses down and save money. However, performing credit card verification for franchise restaurants can not only save your business money but it can also prevent a lot of potential legal problems.
However, to ensure this, you must avoid the following 3 credit verification mistakes that can hurt your franchise restaurant.
1. Not Demanding Complete Transparency from Credit Card Processor
When they sign up with a processor, most franchise restaurant owners are quoted a fee for processing credit card in addition to questionable fees charged on the business’ monthly merchant account statement.
As it is too confusing for them, most franchise restaurant owners fail to verify this fees on their merchant account statement. Instead, they keep making the payment with the assumption they are paying the rate that was verbally quoted to them. In most cases, the quoted rate is not the same as the amount paid by the business. Therefore, it is critical that you demand complete transparency from your credit card processor. This means that they should explain each line item and the fees for those items.
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2. Not Making Use of Verification Checks
When you submit a card payment to the card issuer of a customer for verification, they use the customer’s ZIP code, CVC, and billing street address to verify the credit card transaction. The issuer checks the information against what they know about the cardholder. The verification check would fail if the provided information does not match with the issuer’s files. Often, a failed ZIP code or CVC points towards a fraudulent payment. Therefore, it is critical for you to make use of verification checks before you fulfill a customer order.
3. Not Outsourcing to Credit Card Verification Services
Expert accounting is another requirement for correctly verifying credit card payments. Outsourced credit card verification services provide many services that make it easy to perform credit card verification for franchise restaurants. The services include deposit verification, bank reconciliation, cash forecasts, and full-service reporting.
At Global Shared Services, we have some of the best talent and software in the world for credit card verification. With us, you get high-performance, end-to-end credit card verification services that you can trust. These services are delivered by a team of experienced professional and tailored to the needs of your restaurant business. Outsourcing your franchise restaurant’s credit card verification to us will provide you with streamlined processes and the ability to scale through operational efficiencies.