In today’s world, a safe and we secured transaction of funds is of the eminent essence. Major credit card provider like Visa, have taken up measures to prevent credit card frauds. Also to facilitate merchants and consumers alike, a security system like code-10 call has been put up for use.
A Code 10 Authorization Transaction is a little-known security feature available to merchants which protect consumers and merchants from fraud. Knowing when and how to make a Code 10 call is necessary for preventing chargebacks and for conducting business in a responsible manner.
Credit card fraudulence can sneak up to anyone in any form, so it is best to be aware of these security systems for prevention. A chargeback is likely to occur in cases of fraud, which is definitely best avoided when there is still time to verify the card. Although credit card fraud is less likely to occur in a card-present transaction or face to face purchases, but a suspicious customer behavior will most certainly require a scrutiny on his/her card, and that too without alarming the customer standing right in front of you.
So when should you opt for a code 10 authorization transaction? You may ask, below are a few pointers on when and how you should be playing this card.
- If the Visa card provided by the customer seems suspicious or altered at sight, like faded card, peeled holograms, worn out numbers. These intended damages are most probably orchestrated by the customer to cover up suspicion.
- You have to check out and match the customer’s physical signature on the sales slip and the signature on the card. If they don’t match you probably have a room for suspicion.
- Check if the embossed number on the card and the number displayed on your electronic terminal match. This is the most effective method to find out the cards genuinity.
- Usually when a card is swiped or inserted in the electronic terminal, the POS (point of sale) machine displays ‘lost or stolen card’ or ‘Pick up card’. This is also a right time to initiate a code 10 authorization.
- Also the tiny 4-digit number printed above or below the account number, should match the first four numbers of the embossed account number.
- Lastly, scan the customer; it is easy to spot if he/she is acting in a strange or suspicious manner. Like nervousness, rushing up the purchase, arriving at closing time or trying to deter your attention from the transaction process altogether by acting too corny or friendly.
In the event of suspicion a code 10 authorization of the card can be made by the merchant to verify the card’s validity over the phone. The process usually involves a series of objective (yes/no) questioning by the representative of the card’s issuer. The process is conducted in a discreet manner, so that the merchant does not alert the customer during the verification process. A course of action will then be advised by the card issuer after the verification is completed.
The code-10 authorization is fairly a simple, straightforward process, but it is very necessary to have the card at hand. After retaining the card from the customer the merchant needs to follow some simple steps, which are:
- Making a call to the processors voice authorization center and request for a code 10 authorization to the operator. Some additional questions may be asked before the merchant is connected to the card issuer.
- The issuer’s operator will then follow up with a series of objective questions, to which the merchant or inquirer will only have to answer in Yes or No format. It is important to take up a calm composure at this moment, as it might alert the customer if the inquirer is too uptight or stern.
Here onwards it is just a matter of following the operator’s instructions, if the operator instructs to pick up the card, the merchant has to weigh the situation and do it only if it is safe. Of course the transaction can be completed, if the situation seems threatening, it is better to go through with the transaction and wait for the customer to leave and the alert the processor for further action. Additionally, one may need to alert the police too.
It is also advised to keep a copy of the card’s information, plus the merchant’s Visa Merchant Identification Number and Visa Authorization Centre phone number, near the point-of-sale and ensure all new staff is familiar with Code 10 procedures