Friday, May 11, 2012

HPBA Retailer Alert: Credit Card Processing Protection

HPBA member retailers are warned to be on the alert for possible credit card fraud that could potentially cost a retailer thousands of dollars. One key to a scam is in the credit card processing.

Recently, an HPBA member reported that a customer came into his store and wanted to purchase a number of high-end products, totaling almost $10,000. The customer had a truck in the parking lot to pick up the purchases. The sales person ran the credit card, however, had to manually enter the credit card number because the magnetic strip did not process.

ALERT!  The authorization code received when you manually enter the card number, does not always indicate the credit card is good. And, a customer prepared to drive off with a large purchase could be a “red flag.”  

When the magnetic strip does not process the card, it could indicate the card has been fraudulently manufactured.

Visa has five basic steps to follow for manually-entered transactions:
  1. Check the terminal to make sure it is working properly.
  2. Check the card’s “valid thru” date to be sure the card has not expired.  If the transaction date is after the valid date, the card has expired.
  3. Get a manual imprint of the card (see “Note” below)
  4. Ask the customer to sign the imprinted sales draft.
  5. Compare the signature on the card with the sales draft.  Do not accept an unsigned card.

Note:  Effective October 15, 2011, U.S. merchants may include the CVV2 in the authorization request in lieu of taking a manual card imprint.

For more information on how to prevent credit card fraud, click on this site,

If you are looking to change your credit card processing provider, HPBA members receive discounted rates with Solveras. Go to: for additional information and a free analysis.