Credit card fraud could make Christmas unmerry for merchants

According to Eddie Blight of FNB Group Forensics, "From checking the security features on a customer's credit card to accepting false letters of authorisation, the onus lies on merchants to safeguard their businesses against credit card fraud."

Card details can easily fall into the wrong hands. Where a customer disputes a charge through a card account, a chargeback could apply, which means that the business involved may be liable for the loss.

"Credit cards are still the cheapest form of payment for consumers, but some important security considerations need to be borne in mind so that our business customers feel safe in conducting credit transactions," said Gavin Tarr, Head of the Business Segment at FNB Commercial Banking.

Apart from the more obvious alerts such as unusual amounts of expensive items, random purchases or several small purchases, store owners must also remain vigilant by checking card and sales voucher signatures, requesting identification under dubious circumstances, and calling the bank for authorisation numbers.

"If you believe you are dealing with a counterfeit, altered or stolen card, call your authorisation centre immediately and ask for a Code 10 - the standard protocol when enquiring about suspicious transactions. If you are unable to swipe the card magnetically, it is imperative that you make a manual imprint for your own protection," Tarr advised. "This is your only proof that the card was, in fact, present during the transaction."

He pointed out that a faxed or scanned copy or photocopy of the card was not an alternative to the imprint and if merchants failed to adhere to this process they could suffer loss in the event of a dispute.

FNB is the first local bank to implement 3-D secure technology, which allows merchants and banks to verify that the person making an online purchase is the authorised cardholder.

"At the same time, we'd like to remind merchants to avoid processing single transactions more than once, and to reconcile their daily settlements to ensure that transactions are processed correctly. By providing copies of sales vouchers within the retrieval request timeframes to their banks they will aid in boosting consumer confidence when members of the public purchase at stores using their credit cards," Tarr concludes.