Although we are making great strides to stop the majority of fraudulent activity with new payment technologies such as EMV, you may still encounter it. Should you suspect fraud, there are several steps you can take to minimize your risk and manage the situation.
When you suspect fraud
If your employees are suspicious about a card or a cardholder at any time during a transaction, tell them to call the Authorization Center and request a Code 10 authorization.
A Code 10 authorization request alerts the card issuer to suspicious activity — without alerting the customer. During a Code 10 call, your acquirer may ask for transaction details. Your call will be transferred to the card issuer's special operator who will provide instructions on any necessary action.
When the operator picks up, train your employees to say, "I have a code 10 Authorization Request," and then follow these steps:
- Stay calm to avoid alarming the person who presented the card.
- Keep the card in question in hand to address any questions.
- Answer the operator's questions in a normal tone, with a simple "yes" or "no."
- Follow the operator's instructions.
- For your staff's safety, do not, under any circumstances, confront or try to apprehend the customer.
If it becomes necessary to notify the police, the operator will do so while your employee waits on the line.
Sometimes fraud happens even with strong preventive measures in place. Keep contact information for reporting fraud easily accessible, and make sure your employees know how to use it.
If a fraudulent transaction occurs, contact the following entities for assistance:
- Your bank or payment processor
- Your legal counsel
- Your local police department or U.S. Secret Service office