Code 10 Call
Both Visa and MasterCard offer merchants, accepting payments in a face-to-face environment, an additional procedure for verifying the validity of a suspicious transaction and even have the same name for it, which is quite unusual – Code 10. Code 10 is an authorization request that alerts the card issuer to the suspicious activity – without alerting the customer. Merchants are encouraged to make a Code 10 call to their processor’s authorization center whenever they suspect that a customer is attempting to commit a fraud at the point of sale. There are two general causes for suspicion:
- The card looks as if it has been altered in some way. Merchants operating in a card-present setting are responsible for ensuring that the card used for payment is a genuine card. The card’s security features should be examined to ensure that they have not been tampered with. Representatives at the point of sale (POS) should be adequately trained to be able to perform such examinations.
- The customer is behaving in a suspicious manner. If the customer is attempting to rush you into completing the transaction or otherwise acting in an unusual manner, this may be a sufficient reason to make a Code 10 call. It is important to remember, however, that there may be a perfectly legitimate reason for the customer’s behavior.
If you believe that there is enough evidence to suspect that a fraudulent activity may be taking place, you should make a “Code 10″ call and request a voice authorization for the transaction at issue from your payment processor. You will be transferred to the card issuer’s special operator who will provide instructions on any necessary action.
Processing a “Code 10″ transaction authorization is fairly straightforward. It is important that you remain calm when calling your processor’s voice authorization center and follow these simple steps:
- Keep the card in your possession and dial your processor’s voice authorization center.
- Calmly state to the representative who picks up the call “I have a Code 10 authorization request.” At this point you may be asked for some transaction details and then the call will be routed to the card issuer.
- Answer the card issuer operator’s questions with a simple yes or no. The card issuer’s representative will then determine whether or not the transaction is fraudulent and provide instructions on how to proceed.
- Follow the card issuer representative’s instructions.
- If the operator asks you to retain the card, you should only do if it is safe to do so. Otherwise the transaction should be completed and further action should be taken after the customer leaves the store. You should never confront or try to apprehend the customer.
In cases when a suspicious transaction is completed, placing a Code 10 call after the customer has left the store is very important. Even though fraud may already have been committed, making the call at that time will prevent the same fraud from taking place elsewhere or even in the same store in the future.
Learn how to minimize chargebacks and fraud
Learn how to minimize chargebacks and reduce your processing costs. The Chargeback Management kit contains a video and an e-book:
- E-Book – Chargeback Manual (40 pages).
- Video – Card Acceptance Best Practices for Lowest Processing Costs (18 min).
Says:
May 30th, 2010 at 5:14 pm
[...] merchant receives a pick-up response. If, during a Code 10 call with the card issuer, you have been instructed to pick up the card, you should follow the [...]
Says:
June 4th, 2010 at 7:36 pm
[...] a Code 10 call. Code 10 is a voice authorization request that alerts the card issuer to the suspicious activity. The [...]
Says:
June 13th, 2010 at 12:54 pm
[...] Account number does not match the one stored in the card’s magnetic stripe. When a card is swiped through a POS terminal, the information stored in the magnetic stripe is “read” and compared to the information printed on the card. The procedures vary by terminal type, so that the magnetic stripe number can be displayed on the terminal or printed on the sales receipt, while other terminals may be programmed to check the numbers electronically. If the numbers don’t match, you will receive a “No Match” message. In such instances, you should make a Code 10 call. [...]
Says:
June 17th, 2010 at 8:19 pm
[...] You are suspicious of the transaction for any reason. If the card or the cardholder looks suspicious, you must contact your processor’s voice authorization center and make a Code 10 call. [...]
Says:
June 20th, 2010 at 10:30 am
[...] Verify the account number. Most point-of-sale (POS) terminals today allow merchants to verify that the card number that is printed on the face of the card matches the account number that is encoded on the card’s magnetic stripe. The verification procedure varies by terminal type. In some cases, the magnetic stripe number is displayed on the terminal or printed on the sales receipt, while in others the terminal may be programmed to check the numbers electronically. In the latter case, you will be prompted to enter the last four digits of the embossed account number, which will then be compared to the last four digits of the magnetic stripe number. Similarly, if the account number is printed on the receipt, only the last four digits will be visible. If the numbers don’t match, you will receive a “No Match” message. In such instances, you should make a Code 10 call. [...]
Says:
June 22nd, 2010 at 11:09 am
[...] a Code 10 call with your processor’s voice authorization center and follow the instructions the [...]
Says:
June 30th, 2010 at 9:15 am
[...] any of these features looks as if it has been altered, you would probably be well advised to make a Code 10 call. The magnetic stripe may have been damaged while the other features were being tampered [...]
Says:
July 2nd, 2010 at 9:46 am
[...] The embossed account number on the front of the card does not match the account number encoded on the magnetic stripe. Swipe the card again and re-key the last four digits at the prompt. If a “No Match” response appears again, it means the card is counterfeit. If it can be done safely, keep the card in your possession, and make a Code 10 call. [...]
Says:
July 10th, 2010 at 12:04 pm
[...] The embossed account number on the front of the card does not match the account number encoded on the magnetic stripe. Swipe the card again and re-key the last four digits at the prompt. If a “No Match” response appears again, it means the card is counterfeit. If it can be done safely, keep the card in your possession, and make a Code 10 call. [...]
Says:
July 12th, 2010 at 9:37 am
[...] 10 calls. If either the card or cardholder looks suspicious to you, make a Code 10 call. Code 10 is a form of a voice authorization request that alerts the card issuer to a suspicious [...]
Says:
July 13th, 2010 at 10:04 am
[...] may be taking place, you should contact your processor’s voice authorization center and make a Code 10 call. You should keep the card in your possession during the call and follow the instructions you are [...]