Card fraud | Royal Bank of Scotland

Face to face

How can you protect your business when the customer and the card are present? These tips show you the correct procedure:

Chip & PIN cards

Your terminal – accurately follow the prompts on the screen.
Entering the PIN – always ask the cardholder to enter their PIN. Nobody else should do this on behalf of the customer.
Locked cards – when a customer enters an incorrect PIN three times in a row, the card is locked. Tell the customer to contact their card issuer. It’s vital you don’t swipe the transaction instead.
Incorrect procedure – if a Chip & PIN card is not processed correctly, you could be liable for the transaction if it is confirmed to be fraudulent later on.

Cards without Chip & PIN

Remember – not every card has Chip & PIN. When you’re presented with one of these cards, make sure you check all visual security.
Obvious signs - check the card to ensure it looks genuine by following the steps on the Card Watch website
Ultra violet light – use one of these lamps to spot the security mark on most cards. Some Visa Electron cards don’t have a security mark.
Name and gender – check the title on the card with the gender of the person using it.
Signature – check the spelling of the name on the signature strip against the spelling on the front of the card.
Check the long number – make sure the number on the front of the card matches the card number you’ll see on the till receipt. Sometimes, when fraudsters ‘clone’ a card, the number held in the magnetic strip doesn’t match the one printed on the card.

The Streamline website has information to help you prevent card fraud.

Authorisation – an important reminder

Even if a card is authorised – if you've not carried out all the correct checks - there's a chance you may not receive the payment.

Remember, authorisation is only designed to show two things: that sufficient funds are available to cover the payment and that the card has not been reported lost, stolen or compromised in any other way.

Warning signs

The customer and the card

Some fraudsters are careless – giving you obvious cause for concern. Others spend a lot of time and effort establishing their credibility, and can be hard to spot.

Be particularly wary of customers who:

Use two cards for one purchase – card scheme rules don’t allow this.
Try lots of cards – if the first, and any following, requests for authorisation have been declined.
 

Here are some other clues you should look for:

Indiscriminate purchases – does it almost look as if the customer doesn’t really care what they buy? If the goods could easily be sold on, you should be even more suspicious.
Easy sales – is the customer too good to be true? For example, are they not even interested in the price or details about the goods?
Large sales – ask yourself if the sale is much higher than your usual sales. Is the customer buying lots of different items? Above all, does this person act like your regular types of customer?
Name and gender – check the title on the card with the gender of the person using it.
Numbers that match – make sure the last four digits of the card number and the signature on the card match those on the terminal receipt.
Signature strip – are there any signs of tampering?
Felt pen signature – if you notice this on a card, it could be a sign that fraudsters are trying to hide the real signature. The card signature should always be in ballpoint pen.

Security features – make sure you check them

The present Visa and MasterCard designs will be around for a while. However, as new cards are issued, they’re being re-branded with updated designs and security features.
New logo design – replacing the Visa flag on front of Visa cards.
Ultraviolet check – Visa cards with the new icon have an ultra violet image inside the logo. You’ll also see the word ‘Visa’ repeated on the signature strip.
Hologram or holographic magnetic stripe – you might see these on the back of new MasterCard or Visa cards.
Embossed characters – the ‘Flying V’ and the ‘MC’ embossed letters might not be on the front of many new cards.
Logos and more – the logos can now appear in more places that before. It’s also worth noting that cards will be able to have ‘portrait’ designs in addition to the current ‘landscape’ ones.
Useful websites: These websites can help you become familiar with the new designs.
Financial Fraud Action UK
Visa
Mastercard
 

Suspicious? Report your concerns.

Always make a ‘Code 10’ authorisation call – if you have any suspicious at all about the card or the person presenting it.

To find out more, have a look at your Merchant Operating Instructions. 

Card not present

The customer and the card

Some fraudsters are careless – giving you obvious cause for concern. Others spend a lot of time and effort establishing their credibility, and can be hard to spot.

Be particularly wary of customers who:

• Use two cards for one purchase – card scheme rules don’t allow this.
• Try lots of cards – if the first, and any following, requests for authorisation have been declined.

Here are some other clues you should look for:

• Indiscriminate purchases – does it almost look as if the customer doesn’t really care what they buy? If the goods could easily be sold on, you should be even more suspicious.
• Easy sales – is the customer too good to be true? For example, are they not even interested in the price or details about the goods?
• Large sales – ask yourself if the sale is much higher than your usual sales. Is the customer buying lots of different items? Above all, does this person act like your regular types of customer?
• Name and gender – check the title on the card with the gender of the person using it.
• Numbers that match – make sure the last four digits of the card number and the signature on the card match those on the terminal receipt.
• Signature strip – are there any signs of tampering?
• Felt pen signature – if you notice this on a card, it could be a sign that fraudsters are trying to hide the real signature. The card signature should always be in ballpoint pen.

Security features – make sure you check them

The present Visa and MasterCard designs will be around for a while. However, as new cards are issued, they’re being re-branded with updated designs and security features.
• New logo design – replacing the Visa flag on front of Visa cards.
• Ultraviolet check – Visa cards with the new icon have an ultra violet image inside the logo. You’ll also see the word ‘Visa’ repeated on the signature strip.
• Hologram or holographic magnetic stripe – you might see these on the back of new MasterCard or Visa cards.
• Embossed characters – the ‘Flying V’ and the ‘MC’ embossed letters might not be on the front of many new cards.
• Logos and more – the logos can now appear in more places that before. It’s also worth noting that cards will be able to have ‘portrait’ designs in addition to the current ‘landscape’ ones.
• Useful websites: These websites can help you become familiar with the new designs.
• Financial Fraud Action UK
• Visa
• Mastercard

Suspicious? Report your concerns.

Always make a ‘Code 10’ authorisation call – if you have any suspicious at all about the card or the person presenting it.

To find out more, have a look at your Merchant Operating Instructions. 

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