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Whether you are starting to accept cards or just need a refresher on security procedures and best practices, the following list outlines steps, checklists and tools to help protect your business. It is important that you and your staff read and understand these guidelines about accepting credit cards.
It is important that you and your staff read and understand these guidelines about accepting credit cards.
1. How can I recognize a potentially fraudulent transaction?
- The person offering you the card does not inquire about the prices of the items, and he/she is buying items that would be easy to sell on (e.g. jewellery, video games, audio equipment, etc.);
- The purchase amount is much higher than your average sale amount (e.g. you normally sell for an average of € 40 per transaction, and now someone is making € 400 worth of purchases);
- The customer takes a long time to sign the voucher;
- The customer has one or more credit cards nonchalantly loose in a jacket or trouser pocket, rather than in a wallet;
- The customer tells you that he/she has already had trouble with the credit card being accepted and asks you to try again for a lesser amount;
- The customer returns several times to you in a short space of time, possibly using different credit cards.
2. Common types of credit card fraud:
- Altered/Counterfeit Cards. On an altered card the name, expiry date, account number, and/or the magnetic stripe have been changed in some way. Counterfeit cards bear a valid account number. A valid card number may appear on the front of the card, in the magnetic stripe on the back of the card, or in both places.
- Lost/Stolen Card.A card is stolen from the cardholder and used fraudulently to purchase goods or services from a legitimate merchant.
3. Checklist for accepting cards safely
Each time a customer presents a card your staff should go through the following checklist:
- Check the numbers on the front of the card. All MasterCard account numbers start with the number 5 (five) and Visa cards with the number four (4). The last four digits of the account number on the front of the card should match the four digits printed on the signature panel on the reverse of the card. These numbers should not be chipped away. And no “halos” of previous numbers should appear under the embossed account number. Visa Electron cards’ account number are not embossed.
- Compare signatures. The back of the card must be signed, and the signature should reasonably compare to the cardholder signature on the sales receipt. Check to be sure that it has not been taped over, mutilated, erased or altered in any suspicious manner. The word “Void” on the signature panel indicates that the signature panel has been tampered with.
- Look at the magnetic stripe. The magnetic stripe on the reverse of the card should appear smooth and straight, with no signs of tampering.
- Examine the expiry date. The card should not be accepted after the last day of the "valid thru" date embossed on the card. Merchant sales assistants must validate the card expiry date.
- Become familiar with new card designs. MasterCard, for example, recently introduced a new card called MasterCard Unembossed. These cards may look different – they have no raised (embossed) numbers, so you cannot make a manual imprint – but the brand behind them is the same. Your business must have an electronic terminal to accept these cards. See how to identify MasterCard credit cards here and Visa credit cards here.
- Is the customer using the card the actual cardholder? A credit card is non-transferable. Check to see that the signature on the sales receipt matches the name on the front of the card. Also, be observant of the customer’s behaviour – does it seem normal, or does the person appear uneasy?
- Compare proof of identity. You may choose to request some additional proof of identity, for example a driver’s licence or passport, in this case compare the name and signature.
4. What to do when You Suspect Fraud
If your employees are suspicious about a card or a cardholder at any time during a transaction, tell them to call the Authorisation Centre on 020 - 6 600 710 and request a Code 10 authorisation.
A Code 10 authorisation request alerts the card issuer to suspicious activity – without alerting the customer. During a Code 10 call, you may be asked for additional transaction details. Your staff may be transferred to the card issuer’s special operator who will provide instructions on any necessary action.
Making a Code 10 Authorisation Request
If your employees suspect fraud, train them to remain calm and call the Voice Authorisation Centre immediately. When the operator picks up, train your staff to say, “I have a code 10 Authorisation Request”, and then follow these steps:
- 1. Stay calm, to avoid alarming the person who presented the card.
- 2. Keep the card in question in your hand.
- 3. Answer the operator’s questions in a normal tone, with a simple “yes” or “no”.
- 4. Follow the operator’s instructions.
- 5. If it becomes necessary to notify the police, the operator may do so while your employee waits on the line.
5. Reporting Fraud
Sometimes fraud happens even with strong preventive measures in place. Keep contact information for reporting fraud easily accessible and make sure your employees know how to use it.
Whom to Contact?
If a fraudulent transaction occurs, contact the following for assistance:
- EMS card
- Your legal advisor
- Your local police department
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