Credit Card Fraud Prevention Tips

Address Verification | Card Verification

While the warning signs and suggestions below taken alone are not a sure method for protecting yourself against credit card fraud, you should be aware of them and use them to make better decisions in the fight against card fraud and chargebacks.

Verify the cardholders identity. Use the customers drivers license or ID card to verify the name, address, and compare signatures with that on the sales slip. If in doubt, dont hesitate to turn down the transaction or call the number on the back of the card, if present, to verify the cardholder information.

Get the customer signature on sales slips. If the customer refuses to sign the slip after you have processed the authorization, void the transaction. Do not process the sale if the cardholder refuses to sign the sales slip.

Observe the Address Verification Service (AVS) results. You have the option in Point of Sale of disallowing manually entered transactions that fail the address verification check. This preference may provide a degree of protection, but may also block some legitimate transactions. Some merchants choose to not accept transactions or ship merchandise to addresses other than the billing address for the account. Be especially wary if the customer requests a shipment to a PO Box or an international address.

Observe the card verification results. It is mandatory to enter the card verification code for your transactions. You also have the option in Point of Sale of disallowing manually entered transactions where the entered card verification code does not match the card issuers records. This check helps ensure that the customer actually has the card in their possession at the time of the sale. Some issuers automatically decline the transaction when a mismatch occurs, others allow you to use your discretion in accepting such transactions.

Be aware of card security features. All major card issuers have unique features to help identify against fraudulent cards. Visit the card issuer Web sites (Visa, MasterCard, American Express, Discover, etc.) periodically to keep up with the latest technologies and features.

Dont refund credit card transactions with cash. Asking for a cash refund on a credit card transaction is a strong indicator of credit card fraud. In some cases, the cardholder will also file a dispute for the transaction after receiving cash, resulting in a possible chargeback to you as well. Refund credit card transactions only as a credit back to the same card.

Report fraud immediately. If possible, notify your manager while holding the card. Alternatively, 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.

Safety Comes First. If you feel you are in danger, decline the transaction and return the card. Call the authorization number after the customer has left to report the fraud.

Related Topics

Protect your customer's credit card data

Take payment by credit card

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