Best Practices

• Tips on Daily Processing
• Do not accept a card if
• What you should do when the card is not present
• Mail/Telephone Order Merchant

Tips on Daily Processing:

• Inspect the card. Look for changes on the face of the card and turn it over to check the signature panel to see if the card has been altered.
• Check the card for a hologram. A hologram is a three-dimensional symbol in either gold or silver foil that is designed to help deter counterfeiting. The image should reflect light and appear to move when you tilt the card. The Visa hologram is a dove. The MasterCard hologram is two interlocking globes.
• Check the expiration date on the card. Cards are valid through the last date of the month. Do not accept an expired card.
• Check the valid date. Some cards will have this feature, where the card is not valid until the date shown. Make sure you have a valid card.
• Check the first four digits. For Visa and MasterCard cards, the first four digits of the embossed card number must match the four digits pre-printed above or below that number.
• Attempt to swipe every card. When you can, always swipe the Card through your terminal and complete the transaction.
• If you are using a manual Imprinter, check the draft for a clear impression. This will ensure that you have captured the embossed card account number. Complete the draft with the date, description of merchandise/service, sales tax, total dollar amount, authorization number and signature. Do this if you are using an electronic printer and the card cannot be magnetic-stripe read. This will ensure that you have captured the embossed card number. Use the manual sales draft to complete the transaction.
• Obtain the customer's signature. Match the signature on the draft to the signature on the back of the card. If the customer's card is unsigned, request another form of identification with a photo and signature. Request that the customer signs his card and then compare the signatures. If the customer refuses to sign, inform him that you are unable to accept an unsigned card for payment and request another form of payment.
• Remember to hold the card until the transaction is complete! Retaining the card throughout the transaction enables you to complete all of the security checks without having to ask the customer to re-present his card for a signature comparison or possible "call center" procedure. You will avoid check-out delays and ensure a smooth transaction.

Do not accept a card if:

• The hologram is missing or of poor quality.
• The customer's signature does not match the one on the card.
• The signature panel does not contain a security pattern in the background -- "Visa" typed diagonally across the panel for Visa cards and "MasterCard" typed diagonally across the panel for MasterCard.
• The Card is warped or has a dull finish.
• The account number and cardholder name are ironed out and the card is embossed with a different number. Evidence of this alteration is noticeable on the back of the card.
• The account number is tilted or slanted, or the embossed data spacing is off.
• The printed information is on top of the laminated surface of the card.
• The printing on the back of the card is blurry or distorted
• Information displayed on the terminal or electronic printer receipt does not match the account number embossed on the front of the card.

What you should do when the card is not present:

When neither the card nor the customer is physically present at the point of sale, the merchant experiences the greatest exposure to disputes, chargebacks and fraud.

• Authorize every sale on the order date. Authorizations are valid for a specific number of days: Visa -- up to 7 days, MasterCard -- up to 30 days. Merchandise must be shipped and sales must be deposited within these timeframes or the authorization will expire. If your shipping date exceeds these timeframes, obtain a new authorization code before shipping the merchandise.
• Record the card account number on the sales draft.
• Ask for both a billing and shipping address. If the addresses are different, determine whether the difference seems reasonable.
• Ask for the customer's phone number. Not as a condition for accepting the sale, but as a customer service tool. The phone number enables you to call the customer for various reasons: to inform him or her that merchandise is back ordered, to request another form of payment if the authorization is declined, or to verify information if the caller seems unclear about address details.
• Do not deposit sales until the ship date. Visa and MasterCard regulations do not permit merchants to receive payment for sales until the goods or services are delivered to the customer. Obtain an authorization on the order date, but do not deposit the sale until the ship date. Visa transactions for custom-ordered merchandise may be deposited on or after the order date -- if the merchant has informed the customer that he will be billed prior to shipping.
• Mail an order confirmation notice to the cardholder prior to shipping. This will not prevent chargebacks, but may reduce the number of inquiries and ticket requests
• Request that your customer service number appear on the customer's credit card statement. Both Visa and MasterCard regulations permit mail and telephone order merchants to place their customer service telephone number where the merchant city would normally appear. This may help the customer recognize the charge when it appears on the statement and reduce the number of ticket requests and disputes. Contact your customer service representative to discuss this option. While it is crucial that all customers are treated with the same courtesy and helpfulness, the following guidelines may be applied to aid in fraud detection without alerting or affecting the customer.

Mail/Telephone Order Merchant:

• A Hesitant Caller. A shaky voice or delayed responses to questions may indicate that the caller is not comfortable with the information he is providing.
• Rush Orders. These are a favorite weapon of the "here today/gone tomorrow" schemes.
• P.O. Boxes and Mail Receiving Services. This may indicate lack of a permanent address.
• Above-Average Transaction Amounts. Merchants often know the amount of an average sale. Be wary of those transactions that greatly exceed the norm.
• PURCHASES THAT CAN BE CONVERTED to CASH. Examples include electronics, jewelry and leather goods.
• 1-800 Return Phone Numbers. Be suspicious of toll-free telephone numbers when given as the day or evening phone number. Attempt to get a direct line instead.
• Multiple Orders in a Short Period of Time. Many merchant systems show all orders placed to a certain account or unique customer number. Be especially aware of multiple orders.
• Fourth Quarter. Fraud is always a consideration, but fraudulent activity is particularly widespread around the holidays.
• Larger than Normal Orders. This is dependent on each merchant's definition of a "normal" sized order. Because criminals are usually using stolen or fictitious credit card numbers that have a limited life span, they need to maximize the size of their purchases
• Orders Made Up of "Big Ticket" Items. These items have maximum resale value and therefore maximum profit potential.
• Orders Containing Several of the Same Items. Criminals usually select the items with the most resale value. As these items are intended for resale, having more of them increases the criminal's profits.
• Orders Shipped "Rush" or "Overnight". Criminals want these items in their hands as soon as possible for the quickest possible resale, and are not concerned about the extra delivery charges.
• Orders from Internet Addresses Offering free E-mail Services. For these services, there is no billing relationship.