Useful Information

When the card and cardholder are present

Please make sure that all staff accepting payment by credit/debit cards on your behalf have read and understood the following guidelines in order to reduce the possibility of fraud.

Remember, these suggestions could help you in preventing fraudulent transactions that could result in a chargeback to you.

• Upgrade your equipment to be chip and PIN capable.
• Non-chip cards are less secure and more likely to be used to perpetrate fraud.
• If  the appearance of the Card being presented or the behaviour of the person presenting the Card raises suspicion , you must immediately call the Cardnet Authorisation Centre on 01268 822 822 and state “this is a Code 10 call”. Answer all of the operator’s questions and follow their instructions.
• Ask  yourself does the customer appear nervous/agitated/hurried?
• Are they making indiscriminate purchases.  For example, not interested in the price of the item.
• The customer makes an order substantially greater than your usual sale.  For example your average transaction is £40.00, but this transaction is for £400.00.
• The customer insists upon taking the goods immediately.  For example  e.g. they are not interested in free delivery, alteration, or if it is difficult to handle.
• The customer takes an unusual amount of time to sign the voucher and refers to the signature on the back of the card.
• The customer appears to be purchasing an unusual amount of expensive items.
• The customer talks fast or tries to continue the conversation to distract you from checking the signature.
• The customer takes the card from a pocket instead of a wallet.
• The customer repeatedly returns to make additional orders in a short period of time causing an unusual, sudden increase the number and average sales transactions value over a one to three day period.
• The customer tells you that he/she has been having problems with his/her card for payment where  multiple transactions are declined but eventually an authorisation is obtained for a much lower amount. (Most genuine customers know how much available credit they have).
• A fraudster may present more than one card, often to find a card that will be successfully authorised.  If this happens, take particular care and also look out for cards presented, issued by the same bank, where the card numbers are sequential or very similar.  When in doubt, make a “code 10” call to the Cardnet authorisation centre.
• If you have an electronic terminal and wish to reduce exposure to fraud, you may request a reduction to your terminal floor limit.  Not only will this reduce fraud but it may also reduce chargebacks due to invalid cards.  Please contact the Cardnet Helpline on 01268 567100 to arrange this reduction.
• You should be on guard when chip and PIN cards are presented and the PIN is blocked or the incorrect PIN is input.  You should check that this is the genuine cardholder because you are at risk if you accept a signature in these circumstances.

Counterfeit Cards

Most cases of counterfeit fraud involve ‘skimming’ or ‘cloning’, this is where the genuine data in the magnetic strip on one card is electronically copied onto another card without the legitimate cardholder’s knowledge.  This type of fraud can be identified by checking that the card number printed on the voucher is the same as that embossed on the front of the card.  If these numbers differ, call the authorisation centre immediately on 01268 822 822 stating “this is a code 10 authorisation”.  
Chip and PIN cards will significantly reduce this type of fraud.

Card Not Present Fraud

Card Not Present fraud occurs when fraudulently obtained card details are used to order goods by telephone, mail order or electronically such as over the Internet.

Fraudsters will normally target goods which are easily resold, for example, computers, TV’s and Hi Fi equipment.  Always be wary if the sales are almost too easy or if the caller is disinterested in the prices/precise details of the goods.

Here are some extra checks you can make to ensure you are dealing with a genuine cardholder.

• Card Security Code and Address Verification Service available from Cardnet.
• Use Verified by Visa (VbyV) and MasterCard SecureCode for internet transactions.
• For business customers not known to you, check their details in your local business directory.
• Private customers addresses not known to you can be checked against the Electoral Register, telephone directory or a BT CD ROM phone disk.
• Obtain a telephone number for the cardholder’s address through directory enquiries and telephone the customer back on that number to confirm the order. (Not necessarily straight away).
• Beware if the cardholder is suggesting unusual arrangements such as going back for another card number if the one given is refused.
• Also check to see if there are any unusual similarities or consecutive sequences in the card numbers given over a period.  (Usually fraudsters will offer card numbers that are the same except for the last four digits. This could mean that a batch of cards has been stolen).
• Be especially wary if the delivery or cardholder’s address given is overseas.

Delivery Warning Signals

Here are some danger signs to look out for when arranging delivery of goods.

• Goods should not be released to third parties such as friends of the cardholder, taxi drivers, chauffeurs, couriers or messengers.  (However, third party delivery of relatively low value goods such as flower is appropriate).
• Insist that goods may only be delivered to the cardholder’s permanent address. If you agree to send goods to a different address, take extra care and always keep a written record of the delivery address with your copy of the transaction details.
• Don’t send goods to hotels or other temporary accommodation. Only send goods by registered post or a reputable courier and insist on a signed and dated delivery note.

Instruct your courier

Make sure the goods are delivered to the specified address, and not given to someone who ‘just happens to be waiting outside’.  Instruct your courier to return with the goods if they are unable to effect delivery to the agreed person/address.

Don’t deliver to an address which is obviously vacant.
Obtain signed proof of delivery, preferably the cardholder’s signature.

If you have your own delivery service, consider training your driver to check the card and take a signed and imprinted voucher.  If you wish to do this, please contact the fraud department by phoning the Cardnet helpline on 01268 567100 for more details.

Always be particularly wary of :
Demands for next day delivery.
Alterations of delivery address at short notice.
Phone calls on the day of delivery asking what time exactly the goods are due to be delivered.

Other important fraud considerations

Remember – An authorisation code only indicates the availability of a Cardholder’s credit and that the card has not been lost or stolen at the time of the transaction. It does not guarantee that the person using the card is the rightful cardholder.

Do not, under any circumstances, process transactions for any other business other than your own. Some fraudsters offer commission to process transactions while they are awaiting their own credit card facilities.  If you process transactions on behalf of any other business/person you will be liable for any chargebacks and could put your own Cardnet facility at risk.

Owners, Partners or officers of the business are prohibited from depositing sales or refund transactions on their own personal credit/debit cards. Doing so will put your Cardnet facility at risk and in addition Cardnet will have the right to process an entry to contradict the transaction without notification.

Fraud Prevention Programmes

Some geographical areas are more prone to fraud than others and you may be unfortunate enough to suffer a fraud attack, particularly if you retail goods that are attractive to fraudsters and can be easily , but illegally, resold.  

In order to protect your business from financial loss it is imperative that you and any staff that you employ follow the contents of your Cardnet retailer operating manual carefully at all times. 

If you suffer a fraudulent transaction we will do all that we can to help you avoid financial loss but, often, the outcome will depend on up the extent to which you have followed the processes and guidelines contained within your Cardnet Operating Manual. 

If you are concerned that you may be vulnerable to fraud attack, perhaps because of your business location or local intelligence, please contact the Cardnet Helpline and ask to speak to our fraud department who will be happy to give you advice and tactical tools if appropriate, to help you combat this crime.