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How to recognize these fraud scams and protect you and your business
Fraud artists are constantly coming up with new ways to exploit unsuspecting merchants – from accessing cardholder information, terminal data or your terminal functions to attempting to replace your Point of Sale (POS) unit with dummy terminals and card-skimming equipment. Gaining access to just one terminal can be highly profitable for these criminals.
Play it safe!
The most effective way for merchants to protect themselves from impersonation fraud is to recognize the tactics involved and know how to respond.
Global Payments never asks you to confirm or
divulge your Point of Sale terminal password.
Global Payments never sends technical personnel to
your business unless you request a service call.
When you do request technical support from Global Payments:
If you do suspect an impersonator:
POS Password Protection
POS Terminal Protection
Losing any amount of money to fraud is too much! From merchant chargebacks to higher operating costs, fraud affects us all. The most efficient place to prevent fraud is at the point of sale, by making sure your employees follow these simple guidelines for every credit card transaction:
- If you are suspicious for any reason, call for a Code 10 authorization.
- If you have an electronic POS terminal, always swipe every card, even if the customer says the magnetic stripe is damaged. If there is no response, or the message is garbled, call for an authorization and take an imprint of the card. If the card looks deliberately damaged, call for a Code 10 authorization.
- If the magnetic stripe is not reading, key in the number manually, and take an imprint with the cardholder’s signature.
- Always call for authorization at the time of sale. If suspicious, call for a Code 10 authorization.
- Ensure there's a paper trail. With signed receipts and credit card slips, there's a good chance you can prove that the merchandise was delivered to the cardholder.
Check the Card
- Check the signature on the draft against the signature on the back of the card. If the signatures don't match up, have the customer sign again or ask for a piece of I.D. If you are still not satisfied, call for authorization to confirm the validity of the card.
- Check the expiration date. Cards are often mistakenly used before their initiation date or after their expiration date.
- Pay particular attention to the 4-digit printed number (BIN) to the left of the embossed account number, above or below. It should match the first digits of the embossed account number. If the printed BIN is not there, the card is most likely counterfeit.
- Be especially vigilant with gold cards. Because of their higher spending limits, gold cards are favorite targets of fraud artists.
- Make sure the customer's address and phone number match up. Be particularly cautious with orders when cardholders live out of the country and/or merchandise is being shipped out of the country.
Learn Fraud Signals
- Train your staff to recognize suspicious transactions, such as orders that are much higher than usual and multiple orders on the same card in a short period of time.
- Be wary of customers who buy many items without regard for the price, size or color. They are often using a counterfeit card to load up on merchandise before the card is detected.
- Watch out for "the check-out bully." The bully's objective is to make such a commotion that the cashier becomes intimidated and rushes the purchase through without following proper authorization procedures.
- Be suspicious of phone order requests for delivery to hotels, office complexes, and post office boxes. Items delivered to a non-residential address may be impossible to trace and could be charged back to you if the transaction is questioned.
- Thieves often purchase big-ticket items shortly before closing in an attempt to rush the sale and avoid authorization procedures.
- Keep the transaction slip and the merchandise behind the counter until the sale has been completed. This prevents anyone from stealing your copy of the sales draft, or from running out of the store with your merchandise if the authorization is declined.
- Never accept a letter that claims to give a customer permission to use someone else's card. Only the authorized signatory can use the card.
- Don't accept credit card payments over the phone, by mail, fax or on the Internet unless you have a special merchant agreement. These agreements can be obtained by contacting Global Payments.
Business Owner, Beware
- Seasonal fraud specialists who don’t have their own merchant accounts often approach legitimate merchants. They will typically offer you a kickback in exchange for depositing transactions through your account. It is important that you only process your own transactions.
- Be wary of high-pressure telemarketers who want to sell you printer paper, toner or other supplies for your Global Payments transaction solution. Purchase supplies only through an authorized Global Payments dealer.
- Make sure your staff know the proper procedures for credit card transactions and follow card acceptance procedures.
- Efficient accounting and reconciliation of your receipts can help pinpoint potential account problems quickly.
- Encourage your staff to report anyone who tries to coerce them into "skimming off" the account data from the magnetic stripe on a credit card. Some crooks use wallet-sized, cordless devices to retrieve this information and produce counterfeit cards.
When the Card Is Not Present, Caution Should Be!
You and your staff are our most effective weapons against fraud. Statistics show that the risk of fraud increases when the card and customer aren’t present at the point of sale.
"Card-not-present" transactions include catalog purchases, telephone or fax orders, and Internet sales. They can also include recurring payments, such as automatic donations and subscriptions.
You cannot accept mail, fax, phone, or Internet transactions without a specific type of merchant agreement. Without it, you are not only vulnerable to fraud and chargeback losses, but you risk losing your merchant privileges. So, before accepting a card-not-present transaction, make sure that you have the proper agreement. Then, take the necessary steps to prevent chargebacks:
When You Use Credit Cards...
Most merchants are also credit card users. Here are some tips you, as a consumer, can take to reduce the chances of becoming a victim:
Everyone who works in your store should be on the lookout for possible shoplifters. Although shoplifters are seldom violent, it's a good idea not to attempt to physically restrain them. Call the police or security immediately.
Here are some tips to help you identify likely suspects: