US Bankcard Services, Inc. (USBSI) Answers Questions on Avoiding Fraudulent Transactions

Even with utmost vigilance, fraud exists – especially in transactions involving money. A single swipe through a credit card terminal using a suspicious card could cause businesses a great deal of financial loss.

Below are answers to some questions raised by merchants on avoiding fraudulent transactions in different scenarios:

In a Mail Order / Telephone Order scenario

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 only 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 by the Card Issuing Bank through the U.S. Bankcard Services, Inc.terminal, merchants should 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.

In an e-Commerce scenario

What precautionary measures should I take?
It is necessary to have a check box or a button for customers to agree on all polices to avoid unnecessary disputes in the future. Ask your U.S. Bankcard Services, Inc. representative for more preventative measures.

In a Restaurant / Retail scenario

What are the minimum requirements I should follow?
• Swiping the card through a terminal. A legible terminal sales-draft (printed receipt or imprinted sales slip) must be present.
• For manually keyed transactions, creating an imprint of the credit card on a sales slip that also has the cardholder’s signature, the transaction date, and the authorization code is necessary.

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