Here are some Best Practice Tips to help you reduce your risk at the point of sale.
Visa Card Best Practices [PDF 113kb]
Authorize every transaction – all point-of-sale transactions require an authorization. If the card is declined, ask for another form of payment.
Attempt to swipe every card through your point-of-sale terminal.
Always run cards through your point-of-sale terminal. If the card cannot be read, obtain a manual imprint of the card.
Key-Entered Transactions
When using a manual imprinter, check the draft for a clear impression. Always use a manual imprinter if the card is key entered or a voice authorization is obtained, check the draft for a clear impression. This will ensure that you have captured the embossed card account number. Complete the transaction by manually adding the date, description of merchandise/service, sales tax, total dollar amount, authorization number and signature. The customer must sign this imprinted sales draft. Your terminal may also prompt you to complete address verification by entering in the billing zip code of the cardholder.
Obtain the customer's signature
Compare the name, account number and signature on the back of the card to those printed on the receipt.
If the customer's card is unsigned, request another form of identification with a photo and signature. Request that the customer signs the card and then compare the signatures. If the customer refuses to sign, inform them you are unable to accept an unsigned card for payment and request another form of payment.
Hold the card until the transaction is complete
This enables you to complete all of the security checks without having to ask the customer for the card back for a signature comparison or possible "call center" procedure.
Refund Policy
Publish your refund policy near the signature line of the transaction receipt. Return funds only to the credit card that made the purchase or issue in-store credit. Do not issue cash for purchases originally made with a credit card.
Truncated Receipts
Be certain that only the last four digits of the card number are displayed on the cardholder’s receipt. Also be sure the expiration date is not present on the cardholder's receipt.
Settlement
Be sure to settle your batches daily.
Some potential signs that a card-present transaction may be fraudulent are:
- Large purchases at opening or closing time.
- Attempting to rush the sale or create a distraction.
- Purchase of several items without checking size color or price.
- Purchasing large items without asking questions.
- Purchasing big ticket items (easy resale items) leaving and then returning to purchase more.
How to Safely and Profitably Accept Checks
How can you protect yourself when accepting checks? Easy! Follow these steps whenever you accept a check:
Check Your Business
Make sure your employees know what identification to accept and what information to gather. Provide step-by-step procedures for checks that appear questionable.
Check the Check
- Does it have the standard check weight and texture? If not, contact the issuing bank to verify that the check is drawn on a valid account.
- Verify that the check contains a valid date, matching written and numerical dollar amounts, the name of the bank the check is drawn on and the account holder's signature. If any of these are missing, the check can be considered "non-negotiable," and the bank can refuse you payment.
- Pay special attention to checks with low numbers (between 100 and 500). While this does not necessarily indicate fraud, it does usually mean the account has been opened very recently; you may want to contact the drawee bank to verify that the check is valid.
- Always be extra cautious with out-of-state checks, and never accept second- or third-party checks.
Whenever a check seems questionable, contact the drawee bank to verify that the check and account are valid, and that the funds are available.
Note: verifying that funds are available at the time of your call does NOT guarantee you payment. It only serves as a means to help you determine whether or not you should accept the check.
Check the ID
- Watch the check-writer sign the check. Compare the signature to a valid photo ID (usually a driver's license). If the signature on the check varies from the signature on their identification, ask for a second piece of ID (this could be a credit card, or even a social security card).
- Verify that the photo and physical description on the identification match that of the check writer.
- Check the identification to make sure it is not tampered with or expired. Know the security features of the State IDs and Driver's Licenses in your area, and always look for these features when accepting them.
Accept the Check
You can usually accept a check with confidence, knowing that the majority of returned checks are honest mistakes. But if you follow the steps above, the chance of a returned check is even smaller.
Your customers are happy because they get their checks approved quickly and easily. And you gain repeat business from those satisfied customers.
Please contact a First National representative at 800-354-3988 for more details on which check service can best meet your business needs.
|
