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.
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:
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.
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:
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.
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.
Merchant Concepts will obtain management approval prior to replacing or reprogramming equipment.
Merchant Concepts employees always identify themselves, and paper is delivered upon request, not by schedule.
If you question any of the above, please contact management and Merchant Concepts.
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:
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!
If you are a merchant who accepts Discover, you can now accept China’s UnionPay card, which is the leading bank card in China.
UnionPay
Things to know about UnionPay:
Merchant Concepts’ clients can contact the office for an acceptance sticker.
In an effort to reduce fraud, the card branding association implemented security features that are on each card type to help merchants fight fraud and chargebacks.
A merchant should always hold onto the card until the transaction complete, this gives the opportunity to check the security features.
Each card type has the following features:
Visa, MasterCard, & Discover
American Express
Card Verification Values/CID/
This number is used in card-not-present and card-present, hand-keyed transactions. The 3-digit security code on the card assures both merchants and consumers that the card is in the right hands. If a customer cannot provide the Card Verification Value or the card-issuing back responds that the code is invalid, the merchant should not accept the transaction. For security purposes, merchants are prohibited from storing this number.
Holograms
The use of holograms is common but not all card designs have them. There are some American Express cards without holograms. Visa uses a dove either as a standalone feature, or as part of a holographic magnetic strip. MasterCard’s standalone hologram is the double-globe, or a series of linked globes when on the strip. Discover’s hologram is a globe pierced by an arrow. This appears on its own or is repeated across the magnetic strip.
Signature Panels
Each card uses a tamper-proof signature panel. When someone tries to remove a signature, the panel rubs off. The signature must match the name on the front of the card. Merchants should match the signature on the card to the receipt when appropriate.
Visa recommends merchants check these features during card-present transactions, as well as comparing the signature on the card to the signature on the receipt, before handing the card back to the customer.
Remember, cards must be signed. If a customer gives you an unsigned card or a card with “See ID” in the signature field, ask them to sign the card and compare it to another form of identification, such as a driver’s license.
Click here for printable PDF version
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It can be frustrating when you just keyed the incorrect amount on a customer’s credit card. We understand that you don’t want to charge your customer incorrectly, so naturally you press the cancel or escape key to stop the incorrect transactions from finishing. Then you proceed to run the customers card again for the correct amount. YOU NEVER WANT TO CANCEL A TRANSACTION WHILE IT IS PROCESSING!
Here is why: your terminal may say the transaction was cancelled on the receipt or display of the terminal, there is a possibility that the transaction was approved by the cardholder’s issuing bank. Once the terminal is processing, the hand shake between the terminal and the cardholders issuing bank is still active. If you hit the cancel or escape button on the terminal, all you are doing is stopping the terminal from receiving the response from the issuing bank. In addition, since the terminal did not receive the communication from the issuing bank, if approved, the transaction would not show on the batch report either.
The correct procedure, when you realize your mistake, is to let the transaction go through its normal course. If the transaction was run as a credit, once the transaction is approved for the wrong amount, immediately void the credit card transaction. Then proceed with the correct amount. If it is run as debit, you must run a return, as you cannot void a debit. Explain to the customer that used debit they will see a total of 3 transactions on his or her statement. Then after the initial transaction is voided or returned, run the correct amount through the terminal. Again, do not hesitate to call if you hit cancel and weren’t sure if the transaction was captured before you run a second transaction. Feel free to call about any other training tips, or to schedule your next face-to-face training!
The Durbin amendment, created by Sen. Richard Durbin (D-Ill.), gives merchants the option to offer discounts to customers who pay with cash or check. It also allows retailers to set a $10 minimum on credit card purchases. And more significantly, it gives the Federal Reserve authority to regulate swipe fees paid by merchants on debit card transactions, limiting fees to what is “reasonable and proportional” to the cost of the transaction.
What does this mean to you? Lowering the cost of PIN-passed debit transactions can significantly reduce your overall processing cost. A few of the key changes are as follows:
1. A lower transaction fee that will be significantly less than your current rate.
2. These lower fees will apply to both consumer and business debit cards.
3. Both PIN- and signature-based transactions will have lower fees.
4. Merchant can select which transaction type (PIN or signature or both) they wish to offer.
5. Merchant can select which debit networks they process through.
These are just a sample of a host of changes that will be implemented as soon as mid-2011.
As a Merchant Concepts’ client, you know that we have always stressed the importance of processing debit transactions. We remain to be one of, if not the only, merchant services provider to offer debit training and quarterly performance reviews. Now, more than ever, you will want to increase debit awareness to your sales staff.
If you would like to learn more about capturing debit and understanding how it could benefit your current program, please contact Chris Mattison, Customer Support Specialist, with any questions you may have or call to set up a training session. As your merchant processor, Merchant Concepts wants your company to be as cost-effective as possible so that you can keep those extra dollars in your pocket versus someone else’s.
Whether you are planning a sales event that takes place during or after business hours, in-store or off-site, Merchant Concepts can help you prepare for any type of special event. For a nominal fee, we will program and deliver a “loaner terminal” unit prior to the day of the event. The loaner terminal can be wireless or connected via standard phone or Ethernet line depending on your needs. In addition, we will provide training at that time for any new or temporary staff on taking cards and fraud prevention. For all merchants that selected the Merchant Concepts Platinum Program, one of the many benefits is the event loaner is included at no additional cost. Below is an overview of the Merchant Concepts Platinum Program:
Call our office to reserve a unit for your event. Please give us at least 7 to 10 days notice to secure availability of equipment for the dates of the event. If you would like more information regarding how you can begin utilizing Platinum Program benefits, please ask for Chris.
