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Preventing Bankcard Fraud

CEBI Summit - Spring ’07 Virginia Crossings Convention Resort -Glen Allen, VA. Preventing Bankcard Fraud. Preventing Bankcard Fraud At The Merchant Level -- Your Level Biff Matthews, President CardWare International. What does CardWare do?

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Preventing Bankcard Fraud

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  1. CEBI Summit - Spring ’07 Virginia Crossings Convention Resort -Glen Allen, VA Preventing Bankcard Fraud Preventing Bankcard Fraud At The Merchant Level -- Your Level Biff Matthews, President CardWare International

  2. What does CardWare do? On behalf of banks, their bankcard sales agents plus individual businesses, CardWare provides products, support and services to businesses that accept cards as a form of payment, convert paper checks for electronic deposit plus accept other types of card initiated electronic transactions such as payroll, gift and loyalty, HSA and EBT What qualifies Biff Matthews? Over 35 years of experience in the card payment industry as both a credit card banker and vendor Fifteen years as a bankcard merchant I’ve been scammed as well as defrauded

  3. The Basics • Before signing, read and understand your contract plus have your attorney read it then explain it to you • Ask questions • Understand your rights and responsibilities • Train your staff, especially new employees, that are responsible for monetary transactions. Retrain and reinforce • Have accountability at the staff person level • Dual responsibility, separate control - checks and balances, the person signing checks does not balance the check book

  4. C.V.V. or C.V.C CVV/C - Card Verification Value or Code – the last three digits in the signature panel

  5. C V V

  6. C.V.V. or C.V.C CVV/C - Card Verification Value or Code – the last three digits in the signature panel CVV provides reasonable proof that the card is in the hands of the person, i.e. cardholder, placing the order

  7. A.V.S • Address Verification Service – matches the numeric value of the shipping address to that of the billing address • AVS indicates that there is a likelihood that the cardholder is making the purchase by having the order sent to their billing address

  8. Keyed Transaction • Magnetic stripe won’t read in the terminal causing the clerk to key in the card’s account number and expiration date • Properly configured terminal should request the CVV, DO NOT skip this step • ALWAYS make an imprint of the card on a draft or the back of the merchant receipt

  9. White Or Fake Cards • White cards are just that, white plastic card with stolen data embossed on the front or even encoded on the magnetic stripe. • A fake card is just a small step above a white card • Acceptance requires collusion on the part of the employee

  10. Converting Paper Checks To Bits & Bytes • ACH – Automated Clearing House – electronic debit of a checking account, business or personal • Check truncation – 2004 is C2B, consumer to business electronic conversion of personal sized checks • Check 21 – 2006 is B2B, business to business electronic conversion of business sized checks • BOC – Back office conversion of all checks

  11. Scams • Adulterated magnetic stripe • Credit without a corresponding sale • Returns using a fake receipt • Credit card disputes and chargebacks that are simply fraudulent

  12. Conclusion • Know the rules and your rights • Sound and enforced business procedures (best practices) • Train and reinforce with retraining • Use the tools provided (CVV and AVS) • Reward vigilance and use of best practices • Checks and balances • Be vigilant yourself (manage by walking around) • Report and prosecute • If it sounds to good to be true, then it probably is!

  13. Biffism It’s not a matter of if your identity will be stolen, it’s when it will be stolen then what you do about it. Be vigilant. Be prepared. • How do you prove without a doubt that you are you? • How do you pay your mortgage, utilities, buy gasoline for your car and food for your family when your checking and savings accounts are frozen, as are all your credit cards? • As being prepared for a natural disaster, be prepared for a financial disaster

  14. Information Sources • www.americanexpress.com click on Merchants in the upper right • www.discovernetwork.com click on the Merchant either at the top left or left of the page • www.mastercard.com after selecting the US, click on merchant services under business • www.visa.com once you select the US, click on Merchant/Accepting Visa on the left

  15. CEBI Summit - Spring ’07 Virginia Crossings Convention Resort -Glen Allen, VA Preventing Bankcard Fraud Preventing Bankcard Fraud At The Merchant Level -- Your Level Biff Matthews, President CardWare International

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