1. CARIBBEAN CREDIT CARD CORPORATION LTD.
Card Present & Card Absent Best Practices
Facilitator: Kristy A Stanley
Fraud and Compliance Officer
June

2. Legal Disclosure
These materials are provided for informational purposes only and should not be relied upon for marketing, legal, regulatory or other advice. You should independently evaluate all content and recommendations in light of your specific business needs, operations and policies as well as any applicable laws and regulations. Caribbean Credit Card Corporation Ltd. is not responsible for your use of these materials, including errors of any kind, or any assumptions or conclusions you might draw from their use.
Use of the following information is the sole and exclusive responsibility of the user.

3. Card Present Environment Best Practices

4. Card Present and Card not Present Best Practices
The issue of credit/debit card fraud presents the single most important challenge to our business
Risk Factors
Opening up of the region to international travel
Growth of the credit/debit card business will attract persons who know our vulnerabilities
Increasing travel by cardholders

5. Common Standards
Place Decals on the door, window & cash registers of your business
Accept all Qualified cards
These cards may look different but they all
Have the same basic card elements and security features, and
Guarantee payment to you when acceptance procedures are correctly followed.

6. Common Standards No surcharging Process reversals not refunds
Deposit transactions for your business only
Deposit transaction receipts within 5 calendar days of the transaction.

7. Common Standards Do not set minimum and maximums
Include taxes in the sales draft
If you are required to collect local taxes, these should be included in the total transaction, as it appears on the sales draft
Do not offer cash refunds for transactions
Returned goods or cancelled services
Offering refund vouchers for refund and adjustments protects you from loss through fraud
A Fraudster, using a stolen or counterfeit card, could purchase goods and return them for cash

8. Authorization
Request authorization for ALL purchases and cash advance transactions ( bank only).
When the card won’t swipe
Usually means one of three things:
The terminal’s magnetic-stripe reader is not working properly,
The card is not being swiped through the reader correctly, or
The magnetic stripe on the card has been damaged or demagnetized.

9. Authorization Merchants should take the following steps:
Check the terminal to make sure it is working and that you are swiping the card correctly.
If the terminal is okay, check the card’s security features to make sure it is not counterfeit
If the problem appears to be the magnetic stripe, follow merchant procedures, which may include:
Key-enter transaction data for authorization or
Call voice-authorization center
For key-entered or voice-authorization transactions, make an imprint of the front of the card. The imprint can be on the terminal sales receipt or a separate manual sales receipt. Either way, it should be signed by the customer.

10. Transaction Adjustments
Split Sales (Cash, Check, two cards)
If more than one card, each with a different account number, is being used, you must use a different sales draft for each card.
If payment was made with card and cash or check, keep separate receipts indicating such together
Exchange of goods of greater value
Prepare a sales draft & seek authorization for the difference in cost
Exchange of goods of lesser value
Prepare a refund voucher for the difference in cost

11. DO NOT ACCEPT THE CARD If the card is invalid
If you suspect that the card may be altered or counterfeit
If the number shown on your magnetic card reader or printed by the electronic point-of-sale terminal does not match the number on the card

12. Staff Training
Merchant staff must be trained on the proper card acceptance procedures including how to recognize Visa & MasterCard security features
Keep your staff up to date with training material provided by your bank.
Training improves customer service
Training reduces losses and risks
Your employees should also know what to do if they have any reason to be suspicious

14. Card Absent Environment Best Practices

15. Merchant Procedures
Follow card acceptance procedure for card not present transactions.
For recurring transactions:
Use the “Doing Business As Name” in all correspondence with the cardholder.
Inform / provide cardholder of third party payment process agent name
Billing amount on the card statement should match the amount agreed with the Merchant
Shipping charges added
Ensure goods or services are delivered in the timeframe agreed

16. Merchant Procedures
Provide a Customer Service contact phone number or
Clearly state merchant termination/cancellation policies in Cardholder agreement
Marketing material, website
Clearly inform cardholder upfront of the billing arrangements and all charges
Act promptly to Cardholder instruction to cancel a recurring payment

18. Merchant Category Codes (MCC)

19. Merchant Category Codes
Hotel and Lodging
Automobile Dealers

20. Hotels Reservations Ask for Inform Cardholder of
Cardholder’s name, account number & expiration date
Optional - Manual Authorization / Advance Deposit
No show
Fraud Prevention
Inform Cardholder of
rate, including taxes,
Advance deposit
exact name and address of hotel
reservation confirmation code

21. Hotels Reservations Explain to Cardholder
The cancellation policy,
Reservation is guaranteed until check-out time on the day following the scheduled arrival date
Hotel “No show” policy & rate
(one night’s lodging, including taxes)
Contact the bank to obtain issuer information (telephone number) in order to complete name and address verification prior to processing the authorization.

22. Hotels Check In Check Out Confirm length of stay
Verify name of Guest with Name on Card*
Request manual authorization for total accommodation during the first night
If an advance deposit was processed, this amount should be deducted from the total transaction amount
Check Out
You do not need to request a new authorization if the final transaction is less than the sum of all authorized amounts, plus 15%
Cardholder signs total invoice
Eg: A cardholder who ed a merchant stating that friends / family members were giving her a trip for her birthday. She of course submitted different card numbers for the merchant to charge. All were charged back claiming fraud. If friends were giving her the trip they could have made the booking themselves or better still put the money to her account so she could make her own bookings.

23. Hotels Handling No-Show Handling Over-Booking
Transaction receipt should include the words “No-Show” on the signature line of the transaction receipt
Handling Over-Booking
If guaranteed accommodation is not available when the Cardholder arrives, you must provide the Cardholder with the following services at no charge
Comparable accommodations for one night at a Hotel at least of the same quality
Transportation to the alternative Hotel
Forwarding messages and telephone calls received to the alternate Hotel
If requested, a 3 minute telephone call

24. Car Rental Agencies Verify name of Customer with name on Card
Request authorization before the Cardholder departs with the vehicle
Valid for the entire rental period
DO NOT include potential damages or loss of the rental vehicle. (Process transaction separately and obtain a signature.)

25. Car Rental Agencies When should you request a new authorization
If cardholder extends rental period and the revise amount exceeds the original authorization by 15%
If legitimate additional charges exceeds the original authorization by 15%
Fuel Used, Additional rental fees, Insurance, Damages, Parking tickets/ other traffic fines
Ensure that Agreement covers all additional charges
/ insurance policy and is signed by the cardholder

26. EXAMPLE
The actual transaction is $ As shown below, this is more than the previously authorized amount plus 15%. Previously authorized amount $ % added Total $ In this situation, an additional authorization is necessary. $ – $ = $ ACTUAL PREVIOUSLY YOU MUST OBTAIN TRANSACTION AUTHORIZED ADDITIONAL AUTHORIZATION AMOUNT FOR THIS AMOUNT* *The total sum of the additional authorization amount plus the previously authorized amount must equal the actual (or final) transaction amount.

27. Conclusion Payment card fraud may never be eliminated however through:
Adherence to the industry best practices
Continuing merchant awareness
Payment card fraud losses may be minimized.

28. Questions and Comments

29. for your time and attention 
Thank You
for your time and attention 