Slide 2 Limiting Exposure to Fraudulent Transactions & What
to do if you suspect fraud Facilitator: Janiere Frank Fraud &
Compliance Analyst June 16, 2011. Slide 3 Legal Disclosure These
materials are provided for informational purposes only and should
not be relied upon for marketing, legal, regulatory or other
advice. You should independently evaluate all content and
recommendations in light of your specific business needs,
operations and policies as well as any applicable laws and
regulations. Caribbean Credit Card Corporation Ltd. is not
responsible for your use of these materials, including errors of
any kind, or any assumptions or conclusions you might draw from
their use. Use of the following information is the sole and
exclusive responsibility of the user. Slide 4 Enjoy the Benefits of
the Card System Increased Sales & Customer Satisfaction
Consumers spend more when theyre not constrained by cash on hand.
Speed of Checkout No more counting change, return checks. Improved
Efficiency Can save you time and money by minimizing cash handling
and payment reconciliation Currency Conversion ( except Local &
US) Settlement is in the currency of your goods regardless of where
the cardholder is from. Slide 5 Limiting Exposure to Fraudulent
Transactions AGENDA Fraud Prevention Best Practices How to Prevent
a Potential Chargeback Transaction How to Minimize Copy Request
Card Acceptance Procedures* The Merchant Agreement Identifying the
High Risk Factors Slide 6 Counterfeit Cards Cardholders are not the
only ones affected by Identity Theft Hackers Internal &
External Dishonest Customers Goods not received Goods defective
Service not provided Dishonest Employees Obtain cardholder
information for personal use at home Slide 7 Merchant Agreement
Merchant shall only use Sales Vouchers in the form supplied or
approved by the Bank. Merchant must operate under the agreed
Merchant Category Code (MCC) Prohibited from disbursing funds in
the form of cash Slide 8 Merchant Agreement Merchant will NOT
charge any fee for accepting payment by the Qualified Card All
goods and services shall be supplied at the same price and rates at
which they are offered to other customers of the Merchant Slide 9
Merchant Agreement The Merchant is prohibited from accepting a card
to collect or refinance an existing debt processing a transaction
for collection of a dishonored check submitting sales draft on
behalf of another merchant Slide 10 Minimize Copy Request Copy
Request is a request by the Cardholder to the Merchant for a copy
of the actual Transaction Receipt. Slide 11 Reasons for Copy
Request Satisfy a cardholder inquiry Transaction Information
Document (TID) needed for cardholders personal records expense
reporting Substantiate a Potential Chargeback or Fraud Report
Cardholder Does Not Recognize Transaction Support legal or fraud
investigation Slide 12 How to Minimize Copy Request Make sure your
Business Name is legible on receipts Change point-of-sale printer
cartridge routinely Change point of sale printer paper when color
streak first appears Handle carbon paper carefully Slide 13 How to
Minimize Copy Request Make sure Customers can recognize your Name
on their bills Train your employees to review sales drafts for
accuracy and completeness Make sure the customer signs the sales
draft & is given their customers copy Merchants who keep copy
request to a minimum are more likely to have lower Chargeback
rates. Slide 14 CHARGEBACK A Transaction that a Cardholder returns
to the Merchant Slide 15 Chargeback Reasons Common Merchant Errors
Transaction Amount Differ Card Not Valid or Expired Credit Not
Processed Late Presentment Duplicate Processing Slide 16
Transaction Amount Differ Verify that Invoice & card receipt
matches or reconciles Ensure that the cardholder signs the Hotel or
Rental loss, theft, damage agreement which states that the
cardholder is responsible for additional charges Slide 17 Card Not
Valid or Expired Take extra care to write the card number correctly
on the manual sales draft Once the card is present it should be
swiped / imprinted as merchant opens himself to chargebacks
(especially MasterCard) Verify Card Features & Card Expiry date
Eg. Pay special attention to Hotel guest whose check out date is
near the end or beginning of the month A card should not be used
before the VALID FROM date Slide 18 Credit Not Processed Deposit
credit receipts with your Bank as quickly as possible, preferably
the same day as the credit transaction is generated At time of
transaction, disclose to the cardholder any policy regarding
returns, refunds or service cancellation To avoid currency
conversion issues, Do Not process refunds on the POS terminals.
Instead forward reversal request to your Bank Slide 19 Late
Presentment Submit all manual receipts to the Bank the same day of
the transaction Merchants have 30 days from the transaction date to
submit all manual receipts Fax or email copy of manual receipts
Slide 20 Duplicate Processing Duplicate Processing is one of the
top three (3) merchant chargeback codes Provide proof of two
separate transactions / Provide proof of PIN present at ATMs Wait
for POS terminal response before attempting to process the
transaction a second time. Ask Manual Authorization Representative
to verify that attempt at POS terminal was unsuccessful / not
authorized. Slide 21 Duplicate Processing Reconcile account daily
Manual authorization should not be added into the POS end of day
net amount Reverse all invalid transactions immediately Ensure that
transactions are entered into POS terminal only once and deposited
only once Make only one imprint of the card for each transaction
VOID & Discard any invalid receipts Slide 22 Chargeback Reasons
Top Merchant Chargebacks Requested Transaction Data not received
Service not provided / goods not received (defective not as
described) Transaction Not Recognized / No Authorization Fraud:
Card Present / Absent Environment Slide 23 Requested Transaction
Data Not Received Respond to ALL copy requests within 30 days from
copy request date. If copy can not be retrieved, request that a
credit be processed to the cardholders account (c/back exchange
rate) Copy Request retrieved information should be accurate and
legible Slide 24 Service Not Provided/ Goods Not Received If a
customer request cancellation of a Recurring Transaction, always
respond to the request and cancel immediately Ship merchandise
before depositing transaction. Process a Name and Address
verification before shipment of goods or for services with high
values Slide 25 Service Not Provided/ Goods Not Received ATM
merchants must provide proof that cash was dispensed Inform
cardholder of Hotel/ Motel No Show policy charge Provide proof of
product or service delivery Obtain from the delivery service
company document with the name and signature of person that
collected the item at the shipping address. Slide 26 Service Not
Provided/ Goods Not Received Provide Cardholder with our Customer
service contact information Test Electronic or Battery operating
items before processing transaction Ensure charges are not
processed if Cardholder paid by other means (cash/check) Slide 27
Transaction not Recognized No authorization Seek Authorization for
all transactions Hotel should authorize transaction at check-in
point Do not complete a transaction if the authorization request
was declined If you receive a Call message in response to an
authorization request, call your authorization center Slide 28
Transaction not Recognize No authorization Ensure that the Doing
Business As merchant name and Address is legible on cardholders
receipt and matches the name on the cardholder statement Verify all
Card Security features and cardholder identification At time of
transaction, disclose to the cardholder any policy additional
service charges, regarding theft, damages or early check out Slide
29 Fraud Card Present / Absent Environment Provide proof of card
presence and obtain cardholder signature Verify cardholder
identification and cardholder authorization to use the card to
settle the account Copy of card and Photo ID Name and Address
Verification check Seek Authorization for all transactions Slide 30
Fraud Report Reasons Lost & Stolen Counterfeit Card Card Not
Present Slide 31 Fraud Prevention Best Practices Lost and Stolen
fraud types can be prevented at the point of sale terminals.
Compare signatures on receipt and card Compare name with valid
photo ID Slide 32 Fraud Prevention Best Practices Card Not Present
fraud can be prevented at the point of name and address
verification check. Verify Name, Address and telephone number Seek
copy of card and valid photo ID before processing shipment of goods
Cardholder Identification System (e-commerce merchants) Slide 33
Fraud Prevention Best Practices Counterfeit Card fraud can be
prevented by checking the card security features. Name on card
matches name on receipt The four digit BIN number matches the first
four embossed number on the card Verify valid Visa or MasterCard
logo In suspicious situations call your card center for a Code 10
Authorization Slide 34 CONCLUSION There is an increasing shift of
payment from paper to plastic. Fraud can be Prevented at the Point
Of Sale Terminals Limit Exposure to Fraud by: Adhering to your
Merchant Agreement Following ALL card Acceptance Procedures
Checking For ALL Valid Card Security Features Ensuring that your
Business Name on the Cardholder Billing Statement and Receipts are
the Same Avoiding Common Merchant Errors that can lead to potential
Chargebacks Slide 35 Code 10 Authorization Slide 36 CODE 10 WHAT
DOES CODE 10 MEAN? Code 10 is the term used by merchants when they
call an authorization centre to let the centre know that they are
suspicious of a card, cardholder, or a specific transaction. Slide
37 BE SUSPICIOUS OF: A card that appears to be altered or
counterfeit A card number that does not match the number shown on
your magnetic card reader or electronic point-of-sale terminal.
Slide 38 SUSPICIOUS BEHAVIOUR CARD PRESENT ENVIRONMENT Random
purchases without regard for size, style, color or price Refusing
free delivery on large items or high-dollar purchases Attempts to
rush or distract sales clerk during transaction Purchases, leave
store, then returns to purchase more Large purchases when store
opens or just before it closes Ask for cash back with a credit card
Slide 39 SUSPICIOUS BEHAVIOUR NON-CARD PRESENT ENVIRONMENT Rush
Orders Suspicious shipping addresses Orders consisting of several
of the same item Made with multiple cards but shipped to a single
address Multiple transaction on one card over a short period of
time Multiple shipping addresses If the cardholder is present and
offers the card number but is not in possession of the card* Slide
40 CAUTION! A cardholder may have a good reason for behaving
strangely so remember to be polite and think rationally. Slide 41
WHAT TO DO IF YOU ARE SUSPICIOUS 1. Do not panic! 2. Hold on to the
card. 3. Call the authorization centre and say, I have a code 10
authorization request. 4. Your authorization centre will connect
you to the issuing centre 5. If the operator instructs, pick up the
card but only if it is safe to do so. Slide 42 Questions and
Comments Slide 43 Thank You for your time and attention
