Safely accept card payments over the phone.

Stolen or counterfeit cards

 Be alert if the cardholder: 

• Makes purchases over the phone without regard to size, quality or price.
• Doesn’t ask the usual questions related to high value goods.
• Purchases large quantities of a particular item such as gift cards.
• Provides unusual customer details (different delivery details to the card details or their name is different from the name on the credit card used for the purchase).
• Makes larger than usual purchase orders.
• Places orders consisting of several of the same items or big-ticket items.
• Makes multiple orders for delivery to a single address.
• Requests delivery of goods to a country you do not normally deal with.
• Requests delivery of goods to a country where the goods would be readily available in the local market.
• Pressurises you to deliver goods immediately, overnight or provides unusual delivery instructions.

It’s important to note these behaviours can have a perfectly reasonable explanation. For example, a rugby fan may decide to forgo the free delivery option for a new TV because that would cause the TV to arrive too late for the start of the game. However, these behaviours may also be a sign that the customer is trying to commit fraud. 

If you have concerns with the purchase, you have the right to refuse to provide the goods or services. If you have already processed the transaction, you can contact Merchant Assist for help.

Refund fraud

Be alert to these requests:

• Claims to have overpaid by mistake and requests a partial refund (this is a common card fraud in charities).
• Asks for the amount to be refunded to a different card or payment method.
• Uses pressure tactics to get the refund quickly. 

How to help protect against refund fraud:

• Ensure refunds are processed to the original card used for the transaction.
• Don’t refund new cards, Western Unions, international money transfers or bank accounts.
• Have a refund policy in place.
• Read our refund fraud article.

Employee fraud warning signs

Employee fraud

It’s important to know that your business is financially responsible for all card fraud, whether this is carried out by an employee, a cardholder or both in collusion.

Employee refund fraud

• A common type of fraud involves employees issuing refunds to their own account.
• To avoid detection, they may create a large debit transaction on a fraudulent card and refund it to their own card.
• It’s likely to take weeks, even months, before the fraud is detected. 

How to protect against employee fraud 

• Closely monitor all refunds. Check that all refunds and corresponding debits relate to the same card number. Particular attention should be paid to large refunds.
• Have a separate authoriser of refunds in addition to the person who physically processes a refund.
• Ensure all refunds have appropriate documentation of customer information (name and contact details) and the reason for return or dispute.
• Match refunds to returned or disputed goods or services and verify with the customers that goods or services were returned or disputed.
• Send all refund transactions to a central office for review.
• Fully investigate refunds without matching sales.

 General best practice tips to help prevent card fraud

•  Reconcile your transactions daily rather than monthly.
• Establish a policy of manager approval or peer review of bank statements to identify suspicious activity.
• Conduct regular internal audits at random times and intervals.
• Audit bookkeeping and accounting processes quarterly.
• Limit employee access to sensitive data and payment systems.
• Never process transactions on behalf of another merchant or company.

Report suspicious transactions

If you suspect a suspicious transaction has been made through your merchant facility, contact Merchant Assist.

Chargebacks

Learn more about chargebacks here.

What's the difference between an account data compromise (ADC) and card fraud?

An ADC is when an unauthorised person gains access to your business environment or payment facility to steal valuable information (like card payment data) with the intention to commit fraud. Card fraud is when stolen card payment data is used to make a fraudulent transaction.