tips_on_avoiding_fraudulent_credit_card_transactions
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tips_on_avoiding_fraudulent_credit_card_transactions [2011/02/18 09:09 (13 years ago)] – craig | tips_on_avoiding_fraudulent_credit_card_transactions [2013/08/21 09:15 (11 years ago)] (current) – [Transaction Receipts] craig | ||
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====== Tips on Avoiding Fraudulent Credit Card Transactions ====== | ====== Tips on Avoiding Fraudulent Credit Card Transactions ====== | ||
- | ^**On a chargeback | + | ^**On a charge back request, if the merchant did not have the customer sign the credit card transaction slip, and the merchant did not verify the signature against the card signature, the merchant is usually held responsible for that transaction.**^ |
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===== Protection against charge back requests. ===== | ===== Protection against charge back requests. ===== | ||
- | If you are unable to obtain a signature and verify the signature the following tips may help to minimize fraudulent transactions.\\ These tips will not protect you in the event of a charge back request, but they will help prevent the charge back requests from occurring in the first place. | + | Fraud related charge-backs occur when the cardholder does not recognize the transaction and/or the transaction was not properly authorized.\\ |
- | * Ask for Photo Identification. | + | Charge-back reason codes for fraud include: |
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+ | If you are unable to obtain a signature and verify the signature the following tips may help to minimize fraudulent transactions.\\ These tips will not protect you in the event of a charge-back request, but they will help prevent the charge back requests from occurring in the first place. | ||
* Ask for the CVV number. This may only prove that the thief has stolen the card, not just the card number. | * Ask for the CVV number. This may only prove that the thief has stolen the card, not just the card number. | ||
* Use address verification. __Only__ ship to the address provided and require signature on delivery. | * Use address verification. __Only__ ship to the address provided and require signature on delivery. | ||
* Do not allow the customer to phone in an order and have someone else pick up the order. Perhaps offer to have it delivered and obtain a signature when it has been delivered. | * Do not allow the customer to phone in an order and have someone else pick up the order. Perhaps offer to have it delivered and obtain a signature when it has been delivered. | ||
* An obtained signature only protects you if the signature matches. A faxed or mailed in signature only protects you if it was the actual card holder who made the transaction. It does not protect you against someone else making the transaction. | * An obtained signature only protects you if the signature matches. A faxed or mailed in signature only protects you if it was the actual card holder who made the transaction. It does not protect you against someone else making the transaction. | ||
- | * If a customer has written "ASK FOR PHOTO ID" in their card signature panel, you can not verify the the card holder signature. | + | * If a customer has written "ASK FOR PHOTO ID" in their card signature panel, you can not verify the the card holder signature, and according to most merchant agreements you MUST NOT accept the transation. |
+ | * Every transaction must be authorized. If a transaction declines, the amount | ||
+ | * **Asking for Photo Identification may be in violation of your merchant agreement**. Some states | ||
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+ | To respond to fraud related charge backs, ensure you provide all supporting documentation including signed, swiped sales receipts, imprints for manually entered transactions, | ||
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==== Transaction Receipts ==== | ==== Transaction Receipts ==== | ||
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* Merchant location code | * Merchant location code | ||
* Space for signature | * Space for signature | ||
- | * Refund | + | * Clearly stated refund / return |
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+ | ==== Duplicate Processing ==== | ||
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+ | Charge-backs for duplicate processing occur when the cardholder’s account is charged more than once for a single sale. This can happen when the same transaction is entered into the POS more than once, the same batch of transactions is submitted more than once, receipts are deposited for the same transaction with more than one bank, or more than one sales receipt is created for the same purchase. | ||
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+ | Avoid duplicates by processing one transaction at a time. If there is more than one purchase in a day from the same customer, create separate invoices for each purchase. Balance deposits and confirm batch totals at the end of every business day to check for duplicate billing. | ||
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+ | Take the following steps for a duplicate processing charge-back: | ||
+ | * If there was more than one transaction, | ||
+ | * If a credit has already been issued for a duplicate transaction, | ||
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+ | ==== Retrieval Requests ==== | ||
+ | An easily avoidable and fairly common charge-back happens when a retrieval request is not responded to properly within the required time frame. The reason code is Requested Tran Data was not received within Max Time frame. Before a charge-back is issued the merchant receives a retrieval request for a sales draft for a particular purchase. If the sales draft is not received in the specified time frame or the sales draft does not meet certain criteria, a non-reversible charge-back can be issued. To avoid this charge-back, | ||
tips_on_avoiding_fraudulent_credit_card_transactions.1298048975.txt.gz · Last modified: 2011/02/18 09:09 (13 years ago) by craig