Presentation on theme: "CARIBBEAN CREDIT CARD CORPORATION LTD."— Presentation transcript:
1CARIBBEAN CREDIT CARD CORPORATION LTD. Card Present & Card Absent Best PracticesFacilitator: Kristy A StanleyFraud and Compliance OfficerJune
2Legal DisclosureThese 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.
4Card Present and Card not Present Best Practices The issue of credit/debit card fraud presents the single most important challenge to our businessRisk FactorsOpening up of the region to international travelGrowth of the credit/debit card business will attract persons who know our vulnerabilitiesIncreasing travel by cardholders
5Common StandardsPlace Decals on the door, window & cash registers of your businessAccept all Qualified cardsThese cards may look different but they allHave the same basic card elements and security features, andGuarantee payment to you when acceptance procedures are correctly followed.
6Common Standards No surcharging Process reversals not refunds Deposit transactions for your business onlyDeposit transaction receipts within 5 calendar days of the transaction.
7Common Standards Do not set minimum and maximums Include taxes in the sales draftIf you are required to collect local taxes, these should be included in the total transaction, as it appears on the sales draftDo not offer cash refunds for transactionsReturned goods or cancelled servicesOffering refund vouchers for refund and adjustments protects you from loss through fraudA Fraudster, using a stolen or counterfeit card, could purchase goods and return them for cash
8AuthorizationRequest authorization for ALL purchases and cash advance transactions ( bank only).When the card won’t swipeUsually means one of three things:The terminal’s magnetic-stripe reader is not working properly,The card is not being swiped through the reader correctly, orThe magnetic stripe on the card has been damaged or demagnetized.
9Authorization Merchants should take the following steps: Check the terminal to make sure it is working and that you are swiping the card correctly.If the terminal is okay, check the card’s security features to make sure it is not counterfeitIf the problem appears to be the magnetic stripe, follow merchant procedures, which may include:Key-enter transaction data for authorization orCall voice-authorization centerFor key-entered or voice-authorization transactions, make an imprint of the front of the card. The imprint can be on the terminal sales receipt or a separate manual sales receipt. Either way, it should be signed by the customer.
10Transaction Adjustments Split Sales (Cash, Check, two cards)If more than one card, each with a different account number, is being used, you must use a different sales draft for each card.If payment was made with card and cash or check, keep separate receipts indicating such togetherExchange of goods of greater valuePrepare a sales draft & seek authorization for the difference in costExchange of goods of lesser valuePrepare a refund voucher for the difference in cost
11DO NOT ACCEPT THE CARD If the card is invalid If you suspect that the card may be altered or counterfeitIf the number shown on your magnetic card reader or printed by the electronic point-of-sale terminal does not match the number on the card
12Staff TrainingMerchant staff must be trained on the proper card acceptance procedures including how to recognize Visa & MasterCard security featuresKeep your staff up to date with training material provided by your bank.Training improves customer serviceTraining reduces losses and risksYour employees should also know what to do if they have any reason to be suspicious
15Merchant ProceduresFollow card acceptance procedure for card not present transactions.For recurring transactions:Use the “Doing Business As Name” in all correspondence with the cardholder.Inform / provide cardholder of third party payment process agent nameBilling amount on the card statement should match the amount agreed with the MerchantShipping charges addedEnsure goods or services are delivered in the timeframe agreed
16Merchant ProceduresProvide a Customer Service contact phone number orClearly state merchant termination/cancellation policies in Cardholder agreementMarketing material, websiteClearly inform cardholder upfront of the billing arrangements and all chargesAct promptly to Cardholder instruction to cancel a recurring payment
19Merchant Category Codes Hotel and LodgingAutomobile Dealers
20Hotels Reservations Ask for Inform Cardholder of Cardholder’s name, account number & expiration dateOptional - Manual Authorization / Advance DepositNo showFraud PreventionInform Cardholder ofrate, including taxes,Advance depositexact name and address of hotelreservation confirmation code
21Hotels Reservations Explain to Cardholder The cancellation policy,Reservation is guaranteed until check-out time on the day following the scheduled arrival dateHotel “No show” policy & rate(one night’s lodging, including taxes)Contact the bank to obtain issuer information (telephone number) in order to complete name and address verification prior to processing the authorization.
22Hotels Check In Check Out Confirm length of stay Verify name of Guest with Name on Card*Request manual authorization for total accommodation during the first nightIf an advance deposit was processed, this amount should be deducted from the total transaction amountCheck OutYou do not need to request a new authorization if the final transaction is less than the sum of all authorized amounts, plus 15%Cardholder signs total invoiceEg: A cardholder who ed a merchant stating that friends / family members were giving her a trip for her birthday. She of course submitted different card numbers for the merchant to charge. All were charged back claiming fraud. If friends were giving her the trip they could have made the booking themselves or better still put the money to her account so she could make her own bookings.
23Hotels Handling No-Show Handling Over-Booking Transaction receipt should include the words “No-Show” on the signature line of the transaction receiptHandling Over-BookingIf guaranteed accommodation is not available when the Cardholder arrives, you must provide the Cardholder with the following services at no chargeComparable accommodations for one night at a Hotel at least of the same qualityTransportation to the alternative HotelForwarding messages and telephone calls received to the alternate HotelIf requested, a 3 minute telephone call
24Car Rental Agencies Verify name of Customer with name on Card Request authorization before the Cardholder departs with the vehicleValid for the entire rental periodDO NOT include potential damages or loss of the rental vehicle. (Process transaction separately and obtain a signature.)
25Car Rental Agencies When should you request a new authorization If cardholder extends rental period and the revise amount exceeds the original authorization by 15%If legitimate additional charges exceeds the original authorization by 15%Fuel Used, Additional rental fees, Insurance, Damages, Parking tickets/ other traffic finesEnsure that Agreement covers all additional charges/ insurance policy and is signed by the cardholder
26EXAMPLEThe actual transaction is $ As shown below, this is more than the previously authorized amount plus 15%. Previously authorized amount $ % added Total $ In this situation, an additional authorization is necessary. $ – $ = $ ACTUAL PREVIOUSLY YOU MUST OBTAIN TRANSACTION AUTHORIZED ADDITIONAL AUTHORIZATION AMOUNT FOR THIS AMOUNT* *The total sum of the additional authorization amount plus the previously authorized amount must equal the actual (or final) transaction amount.
27Conclusion Payment card fraud may never be eliminated however through: Adherence to the industry best practicesContinuing merchant awarenessPayment card fraud losses may be minimized.