Protect yourself against credit card fraud and chargebacks!
In order to help your business, we have included some useful tips to prevent fraud and keep your consumer’s information safe.
Verify Cardholder Identity
● Use the customer's driver's license or ID card to verify the name and address. Compare the signature on the driver's license or ID card with that on the sales slip.
○ If in doubt, don't hesitate to turn down the transaction or call the number on the back of the card, if present, to verify the cardholder information.
Have Customers Sign Sales Slips
● It's a good idea to insist on having customers sign sales slips.
○ If a customer refuses to sign the slip after you have processed the authorization, you can void the transaction at your discretion.
Be Aware of Card Security Features
● All major card issuers (Visa, MasterCard, American Express, Discover, etc.) offer unique features to help identify fraudulent cards and protect you from fraud.
○ Visit the websites of card issuers periodically to keep up with the latest technologies and familiarize yourself with the card issuer's security features.
Report Fraud Immediately
● If you detect or suspect fraud, while holding the card, if possible, initiate a voice authorization and request a Code 10 authorization.
○ The operator will ask you a series of yes or no questions and guide you through the necessary steps.
● If you think a transaction is fraudulent, decline it and return the card.
○ Call the authorization number after the customer has left to report the fraud.
Credit Card Refunds
● Asking for a cash refund on a credit card transaction is a strong indicator of credit card fraud.
● In some cases, the cardholder may also file a dispute for the transaction after receiving cash, resulting in a possible chargeback to you as well.
● To protect yourself from this type of activity, you should refund credit card transactions only as a credit back to the same card.