Cardholder disputes and chargebacks - Face to face payments

Could your business be at risk of fraud or chargebacks? Be aware of the warning signs

Be aware of how customers behave when they are shopping. If you notice anything out of the ordinary, or something that just doesn’t feel right, it could be a sign of potential fraud, so act on your instincts and don’t go ahead if you are suspicious. Look out for:

Splitting payments

Could indicate the customer is trying to avoid authorisation for the full amount.

To help avoid the risk of a chargeback always ensure you accept the full payment amount on one card.

PAN/ manual keying

Payments should always be made using Chip & PIN where possible, unless the card payment terminal prompts you to manually key the transactions.

If manual keying is necessary then you must obtain a manual imprint of the card on a paper voucher, and also write on it ‘no value swipe failure’ and the cardholder must sign both the paper voucher and the cardholder receipt.

A customer requesting for their card to be manually keyed could indicate a suspicious transaction.

Declined transactions

Be aware of declined payments, especially if a customer’s PIN is declined numerous times or they attempt several cards to process a payment.

On average customers hold no more than three different payment cards in their wallet, so presenting more could be unusual activity.

Have concerns or are you suspicious about a card transaction?