How to guard against Fraud

These guidelines could help prevent fraudulent transactions within your business.

Please remember that authorisation is not a guarantee of payment. If a sale appears too good to be true it probably is. 

No Chip and Pin

If you are presented with a card  that does not have Chip and PIN,  be extra vigilant.

Check the Customer

Check the Transaction – is it in line with your usual business?

Remember: if the appearance of the card being presented or the behaviour of the person presenting the card raises suspicion, you must immediately telephone the Authorisation Centre and state “this is a code 10 authorisation”. Answer all of the operator’s questions and follow their instructions.

Split Sales with Cash, Cheque or Second Credit Card

If the total sale is equal to or exceeds your ceiling limit and payment is offered partly by MasterCard, Visa, internationally issued Maestro or Laser and partly by cheque, cash or any other method, authorisation must be obtained for any part of the card transaction being paid with by card – even when the card amount is below your ceiling limit. The Authorisation Centre should be informed that the request for authorisation is in respect of a split sale.

They may require further details.

Note: If a transaction is above your ceiling limit, you should contact your Merchant Service provider to request an increase in your ceiling limit and not accept split payments. If you have any questions or require guidance in relation to authorisation issues, please contact your Merchant Service Centre. For security reasons your ceiling limit should never be displayed to the general public.

Please ensure you have agreement from your Merchant Services before making any CNP or eCommerce transactions. You will also need a separate MID for eCommerce transactions.

Accepting cards has always carried a risk and especially so when ordering goods by telephone, mail order or electronically such as over the internet. CNP transactions, including eCommerce transactions provide more opportunity for fraudsters, as the card cannot be present at the time of the purchase. Businesses that are affected by CNP and eCommerce fraud can experience costly Chargeback Disputes as well as a loss of goods or services provided. Under no circumstances should a card sale be split between two or more vouchers for the same card to avoid authorisation as these card transactions may be subject to a Chargeback Dispute. 

Additionally if a customer presents more than one card for payment please take care and complete additional checks to validate the transaction.

Important: Under no circumstances can goods purchased by CNP or over the internet be handed over the counter or collected by the customer. You will be liable for a Chargeback Dispute if the transaction is disputed at a later date. If a customer wishes to collect the goods then they must attend your premises in person and produce the card. Destroy any sales voucher that may have been prepared and process an over the counter transaction. If you have already processed a CNP or eCommerce transaction you must either cancel it or perform a refund.

There are a number of additional checks you can make to help ensure that you are dealing with the genuine Cardholder including:

Delivery Warning Signals

Here are some danger signals to look out for when arranging delivery of goods:

Instruct your Couriers

If you have your own delivery service, you may want to consider portable terminals; please contact the Merchant Support Centre for more information

Other Fraud Considerations

Do not under any circumstances process transactions for any business other than your own

Fraudsters may offer commission to process transactions when they have not been successful in obtaining their own credit card facilities, or you may be asked to process transactions on behalf of a third party while they are waiting for their own facility. If you process transactions on behalf of any other business/person you will be liable for any Chargeback Disputes and doing so is in breach of your Terms and Conditions and will lead to termination of your agreement.

Your card transactions must not involve any card issued in:

Transaction Laundering

If you are approached with a proposal to buy card transactions, you must contact your Merchant Service Provider This is a form of money laundering and is contrary to the terms of your Merchant agreement.

Phishing E-mails/Calls

If you are contacted by somebody claiming to be a bank or an official business asking for transaction details of cards recently accepted for payment, please advise your Merchant Service Provider.

This is a fraud tactic to obtain card details.

A bank or any other official business would not make contact in this way to request card information. Please take care when receiving calls or visits from ‘terminal engineers’ fraudsters will attempt to gain access to your terminal or may manipulate you into processing fraudulent refunds.

Please always validate these by calling your Merchant Service Provider who can advise or investigate.

Fraud Prevention Tools

Some businesses are more prone to fraud than others. It is your responsibility to protect your business from financial loss.

Terminal Security – Protecting your POS Equipment

Card Security Code (CSC/CVV2/CVC2)

The Card Security Code (CSC) is the last three or four numbers on the signature strip on the back of the card.
For all MasterCard, Visa and some Laser cards, the code is the 3-digit number that follows directly after the card number.
On some cards, only the last 4 digits of the card number are repeated in the signature strip, followed by the 3-digit CSC.

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