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Fraud & Chargebacks

What is fraud?

Fraud involves criminal activity, such as the use of stolen or counterfeit cards to make purchases.

Tips to prevent fraud

Always

  • Ensure the card is present during the transaction
  • Check for visible alterations and expiry date
  • Keep the card until all checks are complete
  • Make a card imprint for manual transactions and include CVV/CVC
  • Call the authorisation helpdesk for manual transactions
  • Ensure PIN is entered by the cardholder
  • Compare signatures on the card and sales voucher
  • Keep smart cards in the device until the transaction is complete

Never

  • Process multiple slips for one transaction
  • Disclose your floor limit
  • Return the card before authorisation or signature verification
  • Deposit transactions for another merchant
  • Accept non-Nedbank add-ons for your device
  • Process manual transactions on debit cards

When to Call for ‘Code 10’ Authorisation

Call if:

  • You suspect a counterfeit or altered card
  • The transaction or customer seems suspicious
  • Signatures don’t match
  • The account number on the voucher differs from the card
  • The customer wants to pay using only the card number

 

What are chargebacks?

A chargeback occurs when a transaction is disputed by the cardholder and reversed by their bank. If you can’t provide the required documentation, your business may lose the transaction amount.

Common reasons for chargebacks

  • Expired or invalid cards
  • Incorrect manual entries or missing card imprints
  • Non-delivery of goods or services
  • Duplicate charges
  • Incorrect transaction amounts
  • Suspected fraud

Tips to avoid them

  • Obtain a card imprint on a manual (zip-zap) machine if the magnetic strip can’t be read, as proof that the card was present during the transaction
  • The cardholder must sign the sales voucher
  • Reconcile your daily settlements to ensure that transactions are processed correctly
  • Obtain authorisation for every transaction over your floor limit if your electronic device does not provide you with one
  • Phone the authorisation centre for authorisation –  do not let the customer provide authorisation or call 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
  • Provide copies of sales vouchers within the retrieval request timeframes

How to authenticate an identity document

  • 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 when the identity document was issued, remembering to age the photo
  • Check the photo and make sure that it is in the holder
  • Ensure that names have not been completed with Letraset
  • Check the type of lettering, ensuring that it is in a straight line and contains no initials

Useful phone numbers

via/mastercard
Merchant Helpdesk

0860 114966

card icon
Visa/MasterCard Authorisation

0860 321222

american express
American Express® Authorisation

0860 321555

Need help? Get in touch with merchant support

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