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According to the Bureau of Labor and Statistics of the U.S Department of Labor, the unemployment rate is currently 6.7 percent. With these staggering unemployment numbers, fraud is even more prevalent than ever. It is now even more important for business owners to maintain strict guidelines for retail purchases made with credit cards. Retail business owners in a card-present environment have just as much at risk as online retailers.

Visa requires that every sales associate check card security features, request an authorization, and obtain a signature.  Below are some steps to follow so you can minimize fraudulent purchases:

1. Make sure the card has not been tampered with or altered. Look for a scratched magnetic strip or shavings on the numbers.
2. Run every card through your point of sale terminal in one direction only. Needing to run the card repeatedly or in multiple directions can be a sign that the card has been tampered with.
3. If you get an “Approved” response after swiping a card, make sure to get the card holder’s signature on the sales receipt. It is important to check that the card holder’s signature matches that of the signature on the card. Keep in mind that it is against Visa and MasterCard’s rules and regulations for a merchant to make a picture ID a condition of purchase.
4. If you receive the response “Pick up” you should confiscate the card. Inform the customer that the card has been reported lost or stolen, and you have been instructed to take it. Only attempt to take the card if you feel safe doing so.

If you suspect fraud, you can make a Code 10 call. A Code 10 authorization request alerts the card issuer to suspicious activity without alerting the customer. You would call your voice authorization number and tell them you have a code 10. You will be transferred to the issuing bank to answer a few questions and await instructions.

If a card’s magnetic strip appears to be worn, and it needs to be key-entered, make sure to be extra cautious. Make sure to get an imprint of the card, as well as a signature. Also check the expiration date.  With the fast pace of the holidays and the number of customers, it can be easy to miss fraud, but if we all do our part we can enjoy the holiday season.