Fraud & Charge Backs

Fraud is the result of criminal activity – the attempt to profit from stolen or counterfeit cards.

A chargeback can occur when a transaction is disputed. The credit card transaction is returned to the acquiring bank (Nedbank) by the issuing bank (the cardholder’s bank). Your business’s bank account may be debited with the amount of this transaction, which means a financial loss to you if you cannot produce the necessary documentation.

Chargebacks can be a result of:

• an expired or invalid card;
• an incorrectly entered manual transaction or one without a card imprint;
• multiple charges for the same transaction;
• a cardholder initiating the chargeback for non-delivery;
• an incorrect transaction amount; or suspected fraud. 

Here are a few tips that can help you protect yourself and your business from avoidable losses. 

Always:

• ensure the card is present during the transaction;
• check for any visible alterations on the card;
• check the validly or expiry date;
• keep the card in your possession until the transaction is complete and all security checks have been done;
• make an imprint of the card for all manual transactions (ensure that you write the CVV/CVC on the imprinted manual voucher);
• phone the relevant authorisation helpdesk when using the manual imprinter to process transactions;
• ensure the cardholder has inputted his/her PIN into the PIN pad;
• compare the signature on the card with the signature on the sales voucher;
• compare the signature on the card with the signature on the sales voucher;
• ensure that smart cards remain in the device for the entire transaction.

Never:

• process multiple sales slips for a single transaction to avoid obtaining an authorisation number;
• disclose your floor limit;
• return the card to the cardholder before authorisation has been obtained;
• return the card before the signature on the merchant receipt is compared with that on the back of the card;
• deposit transactions on behalf of another merchant through your bank account;
• accept any add-ons, such as card readers, for your device from non-Nedbank individuals; and
• process a manual transaction on a debit card. 

• Obtain a card imprint on a manual (zip-zap) machine when the magnetic strip can’t be read. This is your proof that the card was present during the transaction. A scan, fax or photocopy is not regarded as an imprint;
• The cardholder must sign the sales voucher;
• Reconcile your daily settlement to ensure that transactions are processed correctly;
• Obtain authorisation for every transaction over your floor limit (when your electronic device does not provide you with one);
• Phone the authorisation centre for authorisation – do not let the customer give you one or phone on your behalf;
• Compare the signature on the card with the signature on the sales voucher.
• Do not use your credit card at your own business to generate funds;
• Adhere to the rules and regulations set out in your merchant agreement; and
• Provide copies of sales vouchers within the retrieval request timeframes.

• Check the back of the photograph to make sure it hasn’t been tampered with;
• Check the driving licence page to make sure that the details match;
• Ensure that the date of birth corresponds with the cardholder’s age;
• Check to see when the identity document was issued, remembering to age the photo;
• Check the photo and make sure that it is in the holder, hasn’t been tampered with and it is in the black border;
• Ensure that names have not been completed with Letraset; and
• Check the type of lettering, ensuring that it is in a straight line and contains no initials.

• If you believe you have a counterfeit or altered card;
• If the presenter/transaction is suspicious;
• if the signatures do not match;
• If the account number of the printed sales voucher differs from that on the card; and
• If the customer does not have the card and insists on purchasing goods with the credit card number only.

• Merchant Helpdesk – 0860 114966
• Visa/MasterCard Authorisation – 0860 321222
• American Express® Authorisation – 0860 321555