Posted by Sarah Jordan

Whatever the purpose for filling out an application—a loan, insurance policy, or in our case, a merchant account—you’ve probably noticed some specific information that is required—your social security number, driver’s license number, and even birth date. With the news stories and consumer alerts about identity theft, you probably prefer to just keep your personal info to yourself. Why do these parties need to know your personal information? Here are a few reasons:

1. Written legislation: The Patriot Act requires certain identifying pieces of information before granting individuals/organizations access to funds.

2. Fraud Protection: Are you really who you say you are?

3. Financial Risk: Are you or your business financially solvent, and how do we know that?

So how do you know we are who we say we are? As a consumer, there are ways to protect yourself. Almost every organization handling your secure information will have security logos on their websites and also have a page stating the security measures taken. Check out www.paysimple.com to see what a security page looks like. If you are unsure about the person you are speaking with, hang up, and use the Internet, telephone book, or Directory Assistance to find the official phone number for the company you are dealing with, and call back directly. You can also ask for references or look up the business in the Better Business Bureau at www.bbb.org.

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Technorati Tags: merchant account, identity theft, The Patriot Act, Fraud Protection