Overview
The purpose of this article is to inform Boulevard customers about best practices for KYC (Know-Your-Customer) verification for new clients who obtain services or products at their business.
Disclaimer: These are recommendations only. Boulevard customers will implement best practices that work best for their staff and clients. None of these recommendations are guaranteed to prevent fraud or win disputes should they arise.
What is KYC?
Know Your Customer or KYC as it is often referred to, is a best practice for a business to verify the identity of a client purchasing from them. Any time a first-time client visits a business, it is recommended that they check the ID of that person against the name on the card they are using at the Point-of-Sale (POS). As an added measure, similar to how Hotels do; a business can check this information up front before performing services. Yes, even for appointments/services booked online or made over the phone.
Why KYC is Important
It is important to verify who a client is that is making purchases to protect the business against potential fraudsters using stolen card data to book services online and then come in and utilize them within days before the actual cardholder realizes that their information has been compromised and they then dispute the charge which results in the business paying a chargeback fee and having funds drafted for services performed.
Recommended Best Practices
Check the client's ID to verify that the name on the ID matches the name on the card being used to pay. An added measure is to verify this before services are performed. If they don’t match, you have the right to refuse service and refund any purchases made online such as a booking fee.
Document the address of the person in their profile just in case a dispute arises in the future. This allows you to show the Issuing Bank you verified the name, address, and phone & email of the cardholder.
Create forms for services that you provide and policies that you enforce that require the client to print their name, sign, and date that is stored in their profile.
Monitor the number of purchases, amounts, and the names of cards stored under a client's profile. If you notice frequency, abnormal amounts, and that a person has several cards under different names; it is recommended to inform management at the business to determine how to address the issue and potentially delete the cards from the profile and block the profile.