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Determining the Validity of a Credit Card Part 2

In the second part of our blog series, “Determining the Validity of a Credit Card” Rich  Placa, Manager of Underwriting and Risk Management at National Debit Card Network, goes on to offer more tips for merchants to help in avoiding credit card fraud:

  • Never send money to the cardholder – There should never be a reason you would need to refund money via bank or other wire service. If the cardholder even broaches this subject, walk away!
  • Never hesitate to contact your merchant provider and request a Code 10 – A Code 10 authorization request is to be utilized if a merchant is attempting to process a credit card and suspect’s fraud or suspicious activity. This request is forwarded to the card issuing bank from the merchant processor so information can be verified before the sale is processed.
  • Follow your instincts – Unfortunately, I have received emails and calls from hundreds of merchants who have been victimized stating that they “knew it didn’t sound right” OR “it was too good to be true” yet still completed the transaction against their better judgment.

Rich goes on to say that, “No one knows your business and the types of sales you process better then you do. If you are approached for a sale that doesn’t feel or sound right, walk away. Seek a different form of payment or at the very least, contact your risk department and have them take steps to offer you an opportunity to make an informed decision.”