Even with utmost vigilance, fraud exists most especially in transactions involving money. A single swipe in a credit card terminal using a suspicious card could cause businesses a great deal of financial loss.
Below are answers to questions raised by merchants on avoiding fraudulent transactions in different scenarios:
On Mail Order / Telephone Order
What are the minimum requirements that I should follow
- Transaction records must show a 100% match on AVS (Address Verification System
- Transaction records must show a “match” on CVV2 (Card Verification Value 2)
- Merchant must ship the merchandise to the AVS address.
- Merchant should have the proof of delivery signed by the cardholder.
- How should a non-verifiable AVS response be handled?
If the AVS is not verifiable through the Card Issuing Bank from the U.S. Bankcard Services terminal, merchants may ask the customer for a different card or another form of payment.
What is a “Code 10 Service?”
It is a call made to a Merchant Support Call Center whenever a card, cardholder, or a transaction is deemed suspicious. Your bankcard services representative will ask you the transaction details and transfer your call to the Card Issuing Bank’s operator who will then assist you on further verification procedures.
What precautionary measures should I take?
It is necessary to have a check box or a button for customers to agree on the payment polices to avoid unnecessary disputes in the future. Ask your U.S. Bankcard Services, Inc. representative for more preventative measures.
On Restaurant / Retail Business
What are the minimum requirements I should follow?
Swiping the card through a terminal. A legible terminal sales-draft must be present.
Matching the photo on the driver’s license or State ID card.
Matching the signature on the driver’s license or State ID card.
For manually keyed transactions, creating an imprint of the credit card showing the cardholder’s signature, transaction date, and authorization code is necessary.
DISCLAIMER OF WARRANTIES
This informational provisions guide is subject to change by Visa/MasterCard. The use of this guide is voluntary. U.S. Bankcard Services will not be responsible for any and all claims, liabilities, losses, damages, costs and expenses (including, without limitations, all reasonable attorneys’ fee) associate with the use of this guide. Merchant should consult their respective processing center for specific guidance. This article is provided by US Bankcard Services, Inc. for reference only. Please contact our service hotline if you have any comments, or would like to receive more information.