Are you being courted to change?

If you are approached by a bank or another merchant processing provider, before making any decisions or changes, please allow us the opportunity to sit down with you and review the offered proposal and explain how your bottom line would be affected.

With changes in the industry a lot of banks are aggressively pursuing merchants by offering loans and new bank deposit accounts. Some banks are even implying that merchants must switch their processing program to receive the benefits of a loan or new bank account. They incent merchants with a quote of low rates or next-day funding without disclosing how those services will truly affect the business. Do not let a bank pressure you!

When you get a bid, give our office a call to review. We will meet or beat any validated proposal.

PCI Compliance Updates

We would like to remind all of our merchants that PCI Compliance will need to be renewed over the next couple of months.

Here’s a link to a presentation by the PCI Security Council that will help explain the standards.

And, as always, if you have questions about your compliance, please give us a call.

Getting Ready for the Holidays

The end-of-the-year holiday shopping season is going strong. Merchants are expecting more customers this year and that means more transactions. Unfortunately, this is also that time of year when fraudulent card increases.

Here are some tips to help you prevent fraud this holiday season:

Accepting Cards:

1. Check the card’s security features: embossed number, hologram, and the
   repetition of the first four numbers printed on the card. See
   this post for more information on card security features.
2. Swipe the card only once to obtain an authorization
3. Check the authorization response:
   • Approved – Ask the customer to sign the sales receipt.
   • Declined – Return the card to customer and ask for another Visa card.
   • Call or Call Center – Call your voice authorization center and tell the operator that you have a “Call” or “Call Center” response. Follow the operator instructions. (Note: In most cases, a “Call” or “Call Center” message just means the card Issuer needs some additional information before the transaction can be approved.)
   • Pick Up – Keep the card if you can do so peacefully.
   • No Match- Swipe the card and re-key the last four digits. If “no match” response appears again, keep the card if you can do so peacefully. Request a Code 10 authorization.
4. Match the embossed number on the card to the four digits of the account number displayed on the terminal.
5. Get the cardholder signature on the transaction receipt.
6. Compare the name and signature on the card to those on the transaction receipt. They should match.
7. If you suspect fraud, make a Code 10 call to your voice authorization center

Handling Key-Entered Transactions

If a Visa card cannot be swiped, you need to key-enter the card account data into your POS terminal. When you key-enter a transaction, you run the risk of accepting a counterfeit card because the magnetic stripe information is unavailable.

When the stripe won’t swipe:

1. Check the terminal to make sure it is working properly. If the terminal is okay and the problem appears to be with the magnetic stripe, follow your company procedures for key-entered transactions. Be sure to check the card security features and match signatures as described here.
2. Match the embossed account number on the front of the card to the number indent-printed on the back.
3. Check the card’s “good thru” or “valid thru” date to be sure the card hasn’t expired. If the card has a “valid from” date, be sure the card isn’t being used before it is valid.
4. Get a manual imprint of the card.
5. Ask the customer to sign the imprinted sales draft.
6. Compare the signature on the card with the signature on the sales draft to be sure they match. Do not accept an unsigned card!
7. If you suspect fraud, make a Code 10 call to your voice authorization center.

Six Warning Signs of Fraud:

Certain customer behavior could point to bankcard fraud. But remember, it doesn’t necessarily indicate criminal activity—you know your customers, so let your instincts steer you in the right direction. Watch out for customers who:

1. Purchase a lot of merchandise without regard to size, style, color, or price.
2. Ask no questions on major purchases.
3. Try to distract or rush you during the sale.
4. Make purchases, leave the store, and return to make more purchases.
5. Make large purchases right at opening or at the last minute when the store is closing.
6. Refuse free delivery for large items

Unsigned Cards

What is the proper procedure for accepting unsigned cards?

Ask the customer to sign the card and request to see valid government identification such as a passport or driver’s license. Compare the signature on the government identification to the signature on the card and the sales draft. If permitted by local law, write the serial number and expiration of the identification on the sales draft.

What if the customer refuses to sign the back of the card?

The signature on a card protects the cardholder from a criminal signing their name on the back and using the card, and allows you to compare signatures to ensure the transaction is legitimate. If the customer refuses to sign the back of the card, the transaction must not be completed.

What if the signature panel instructs the merchant to “CHECK ID?”

A card where the customer has written “CHECK ID” in the signature panel is considered an unsigned card.

Note: The words “Not Valid Unless Signed” are printed near the signature panel on all Visa cards. This requirement provides merchants with an independent source to refer to when requesting that cardholders sign their cards, as well as justification for refusing to accept an unsigned card.

Scam Alerts

1. Accepting an authorization number obtained by the cardholder and/or any outside source.
2. An authorization number not obtained through proper procedures will result in loss of funds by the merchant

   A legitimate authorization is only obtained through the terminal or if prompted by the terminal to call voice authorization line; the phone number on the side of the terminal is the only number registered to issue authorization numbers.

3. Allowing unauthorized offers to upgrade or change your terminal
4. When terminal is reprogrammed funds can be routed to third party bank account.

   Merchant Concepts will obtain management approval prior to replacing or reprogramming equipment.

5. Allowing unauthorized deliveries of paper
6. There is always a string attached, either as a bill for overpriced paper, or an offer to upgrade your services, leading to signing up for a new merchant account.

   Merchant Concepts employees always identify themselves, and paper is delivered upon request, not by schedule.

7. Give out transaction or financial information via phone request
8. Can result in Cardholder being contacted in an attempt to obtain full card data.Established merchant service providers have secured access to view a merchant’s transaction activity. Therefore no merchant service provider would contact a merchant to obtain cardholder data.

If you question any of the above, please contact management and Merchant Concepts.

Code 10

CODE 10 is a method to reduce fraud. Call your voice authorization center to alert the card Issuer when you are suspicious of the card, the cardholder, or the transaction. Indicate this is a CODE 10 call to get special assistance from your merchant authorization operator. They will connect you to the card Issuer. CODE 10 calls should always be made when you’re suspicious, even if you have already received an approval code.

When should a merchant use CODE 10?

In any of these instances:

• Whenever you’re suspicious of the card, the cardholder, or the transaction.
• When the four-digit number printed on the card does not match the first four embossed account numbers, or when the printed four-digit number is missing.
• When the embossing appears to have been altered or tampered with.
• When there’s no security character next to the expiration date.
• When the hologram appears to be fake.
• Whenever the signature panel appears altered or the signature on the sales slip does not match the signature on the back of the card.

Can a CODE 10 call be made if the customer is no longer present?

Yes. Your safety always comes first. If you are not comfortable making the call when the customer is present, or you don’t become suspicious until after the customer has left, call as soon after completing the sale as possible. This is just as effective in reducing fraud.

To initiate a code 10 call: 1-800-555-5707

Happy Holidays!