Use extra care with credit card transactions

MRA Customer Service has noted several problem areas in credit card transactions recently. The following explanations and reminders may help you avoid chargebacks and deter fraud.

Returns and credits
In recent months, MRA has seen a much higher incidence of return credits issued to credit card accounts other than the one used for the original sale. Returns must be credited back to the same card used at the time of purchase.

Return transactions are monitored to protect merchants and customers, as well as to detect fraudulent employee theft and merchant error. The bank may block these transactions unless the merchant can show a receipt proving it was charged on the same account (perhaps from a different store location or when a store used a different processor).

This protects the merchant from a chargeback on the original card. If the customer knows he returned an item and does not see the return credited to the original card, the merchant may incur a chargeback and would have difficulty disputing it, in effect paying the refund twice.

If the customer does not have the original card at the time of the return, a merchant can give store credit, using a gift card or issuing a “due bill” receipt. The best option is to issue the return credit on the original card, to prevent confusion, disputes and unhappy customers later.

False expiration dates
Several MRA members recently reported fraud attempts in which the expiration date printed on a credit card is valid, but the authorization center reports the card has expired.

In such a situation, the card account number may have been stolen, then printed on a new card with an incorrect expiration date. If you encounter such a transaction, place a “Code 10” call to your merchant processor’s voice authorization phone number and wait for an operator. (Call 800.563.5981 if MRA is your processor).

Call for authorization
When a terminal responds to a swiped card with a request to call the voice authorization center, it simply means more information is needed before the sale can be approved. Most of these transactions are approved, so call your authorization center and follow the authorization agent’s instructions. In most cases, the agent will ask to speak directly with the cardholder or will instruct you to check the cardholder’s identification.

Split sales
Merchants may not split a single transaction between two or more sales receipts, using a single cardholder account, in order to avoid authorization limits. Use one sales receipt per transaction for the full transaction amount.