NFIB

Suspicious Transactions
06/ 06/ 2003

by Jeffrey Moses

Most credit card users are honest and use their cards in good faith; but there are instances, however infrequent, when individuals try to pay with stolen, expired or unauthorized cards. When this happens, it is important for you to know and understand the proper procedures for dealing with suspicious credit card transactions.

When a customer tries to make an unauthorized purchase with a credit card, a special message appears on the merchant's screen. This message instructs the business to call a specific toll-free number to receive instructions from security personnel about how to proceed with the transaction. Instructions will vary depending on the situation; the security personnel may ask, for example, that the card be held without further charges or that the transaction be limited to a certain dollar amount.

It is also possible that you will become suspicious of a transaction even before you swipe the card. Security experts recommend that merchants look out for the following signs of credit card fraud or misuse:

1. Someone makes a large transaction without asking details about the product or price.

2. Multiple transactions are made the same day.

3. The card's expiration date has passed.

4. The card does not contain a signature.

(In this case, ask to see a driver's license or other photo identification and ask the cardholder to sign the card. Then check the signature to be sure that it matches with the signature on the identification. Remember: a merchant always has the right to ask for picture identification when suspicious of a transaction.)

5. The signature on the back of the card does not match the signature on the sales slip.

6. The 16-digit number on the card does not match the number that is displayed on your terminal and is printed on the sales slip.

7. The magnetic strip has been damaged or manipulated.

8. The hologram is misshapen.

9. The number on the front of the card does not match the number on the back of the card.

If you are suspicious of credit card misuse or fraud, you should directly contact the card's security department to make a report. As a responsible merchant, you should have an easily accessible list of contact numbers for all major credit cards. Protect yourself and your business by examining suspicious cards.

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