The Cardservice® Loss Prevention Department helps merchants reduce
the risk of credit card fraud by carefully monitoring merchants' daily
transaction activity.
Major Reasons for Unauthorized Credit Card Transactions
Reason #1: Merchants are not comparing the signature on the
back of the card with the cardholder's signature
Reason #2: Merchants must take the time to verify
information that is given over the Internet or via the telephone. Because this
is a non-face-to-face transaction, it is important to make certain that the
person using the card is the cardholder. If need be, call the cardholder to
confirm the order.
Reason #3: Face-to-face transactions also require due
diligence on the merchants' part. Check the credit card for the hologram, and
make certain it bears no alteration marks.
Reason #4: The merchant rushes through the transaction.
Consumers who knowingly commit credit card fraud at a store wait for a busy time
when it is unlikely that the merchant will scrutinize the card.
