This should be a “no brainer” at this point, but just for the record: never accept payments from people offering to overpay for your products or services.

Set your prices and be firm about them. This is a huge red flag, and you should respond by rejecting any transaction with this customer. This is doubly true of any customer who offers to pay your transaction fees. Most customers want to save money, not spend more of it.

If a customer fails to correctly identify themselves according to the information the card network or bank has on file, the transaction should be declined. There are actually many methods you can use to verify buyers. The key is deploying the right fraud detection tools. Some examples include:

• AVS and CVV
• 3D Secure 2.0 technology
• Geolocation
• IP Tracking

None of these fraud tools are foolproof on their own. However, they are extremely effective at preventing many forms of fraud when used together as part of a coordinated strategy.

Never forward funds to a party other than the buyer for any reason. Period.

Customers that ask you to transfer any amount of money for any reason should be flagged as potential fraudsters and their transactions immediately canceled. If the transaction has already been processed by the time the customer contacts you, you can refund the original purchase using the specific details you were provided for the approved payment. You may then want to block that cardholder from initiating future transactions.

Don’t make a habit of adjusting payment methods to accommodate a tricky sale. If a customer is asking you to rearrange any of your tried and true payment methods, simply don’t do it.

Don’t switch out payment processors or accept checks for amounts higher than the listing prices. To put it bluntly, whenever something sounds too good to be true… it usually is. Remember that your rules and best practices are in place for a reason.

Never ship merchandise, deliver services, or provide access to goods until payment has completely cleared your account. Despite what your online banking shows, “available funds” doesn't mean verified funds.

Banks often make deposited amounts available within days, but the full verification process for checks and some electronic payments can take weeks. During this window, fraudulent payments can still be reversed, leaving you liable for the full amount. Contact your bank directly to confirm when a payment has cleared beyond reversal before fulfilling any order or issuing refunds.

One way to stop overpayment scams is to make overpaying technically impossible. For example, use digital invoicing software that locks the final payment amount so that the customer is unable to alter the total or cut a check for more than the listed price.

Stick to payment methods that offer buyer and seller protections, such as credit cards processed through your merchant account, PayPal Goods & Services, or established payment processors. Avoid wire transfers, prepaid debit cards, cryptocurrency, gift cards, and money orders for transactions with new or unknown customers. These payment methods offer no recourse once funds are sent and are favorites among scammers precisely because they're irreversible.

Scammers create artificial urgency to prevent you from thinking clearly or seeking advice. They might claim they need the item immediately, insist you process the refund before their bank reverses the charge, or fabricate emergencies requiring instant action.

Legitimate customers understand that businesses have verification processes and will respect your timeline. If someone is pushing you to act quickly, making you feel guilty for waiting, or threatening consequences for delays, you're likely dealing with a scammer. Take your time, consult with colleagues or advisors, and never let anyone rush you into financial decisions.

For private sales or local transactions, insist on meeting buyers in person at a safe, public location rather than shipping items or accepting remote payments. This allows you to accept cash (which you can verify on the spot) and eliminates many scam opportunities.

Choose well-lit, populated areas like bank lobbies, police station parking lots, or busy coffee shops. Bring someone with you if possible.

Maintain detailed records of all transaction communications, including emails, text messages, social media conversations, and phone call logs. Take screenshots of payment confirmations, buyer profiles, and any unusual requests. For physical items, photograph the merchandise before shipping and use tracked shipping with signature confirmation. This documentation becomes invaluable if you need to dispute chargebacks, report fraud to authorities, or defend yourself against false claims.