Processing Cards in a Face-To-Face Environment

Credit card processing in a face-to-face setting provides merchants with a certain amount of leverage over weeding out fraudulent transactions before it is too late. Having a visual contact with your customer and the ability to physically examine the payment card, as the transaction is being processed, gives you a powerful tool to evaluate the genuineness of both the card and the cardholder. In order to exploit your advantage to the highest degree, you will need to follow a set of payment processing procedures at the checkout. Your point-of-sale personnel must be fully trained to execute your card processing strategy. The process of accepting payment cards includes:

• Swiping the Card. This procedure is straightforward enough and it does not require much explanation. Make sure you place the card correctly so that the magnetic stripe is in the right position to be read by your terminal.
• Checking the Card's Security Features. This is probably the most important stage in the process. Make sure the card has not been altered in any way, pay close attention to the account number and the Card Verification Code, as well as the hologram. If any one of these features looks altered, this, in itself, might be a sufficient reason to make a "Code 10" call (see below).
• Authorizing the Transaction. Make sure your authorization request is approved and have your customer sign the sales receipt.
• Comparing Sales Receipt to Payment Card. Make sure the account information, printed on the sales receipt, matches the card's details. Compare your customer's signature, provided on the receipt, to the one on the back of the card. If everything looks legitimate, return the card to its cardholder and provide him or her with a copy of the sales receipt.
• Making a "Code 10" Call. If you have gathered enough information to lead you to suspect a fraudulent activity, call your merchant services provider's authorization center and state that you are making a "Code 10" call. This is the code word for reporting a possible fraud. You will be routed to the card issuer's call center, where you will be asked to answer, with a "yes" or "no", a series of questions to determine the legitimacy of the transaction. Upon reaching a conclusion, you will be given instructions on how to proceed. If asked to recover the card, you should only do so if it is safe. If not, complete the transaction and alert your management after your customer leaves the store.

Following the above procedures will ensure lower levels of fraud and less chargebacks which, in turn, will improve your bottom line.