Selling over the phone or by mail order? It’s great for business but it’s more risky. Here are some things you should know about your liability.
If your customer isn’t present to put their card and PIN into your card machine, you could be dealing with a fraudster and your business is liable. Then, if the genuine cardholder subsequently raises a Chargeback, you could lose the goods and the proceeds of the sale.
Taking the CV2 code means you are still liable but it does help you to avoid non-secure charges.
For more information read our Guide to avoiding card not present fraud.
1. Key in the sale amount
Key the sale amount into your card machine, and press ENTER.
2. Enter the card number
Your card machine displays Present, insert or swipe card. Enter your customer’s 16 digit number on the front of the card, then press ENTER. The number is shorter on some cards e.g. American Express.
3. Enter the expiry date
Now your card machine displays Key expiry date. Key it in and then press ENTER.
4. Confirm your customer is not present
Your card machine displays Is the customer present? Press CLEAR.
5. Enter the security code
It’s usually 3 digits and printed on the security strip on the back of the card. If it’s an American Express card then its 4 digits and on the front.
6. Follow the extra identity check
There are two parts to the check.
First, your card machine displays “key in Numerics from the Post Code”.
Key only the numbers (not the letters). So for postcode NN4 7SG key in 47.
Then press ENTER.
Second, your machine displays Key In First Five Digits Of The Address.
Key in the numbers only (not the letters). So for flat No 123a-456b, key 12345.
Then press ENTER.
7. Check the authorisation code
Now your card machine displays an authorisation code for the funds and a message to confirm the result of the address and CV2 data checks.
It’s your choice whether to go ahead or decline if you’re not happy with the level of match. (A lower level of match may indicate a greater risk of chargeback).
Press ENTER to proceed or CLEAR to terminate the sale.
8. Keep your receipt
Tear off your receipt and keep it in a secure place.
As well as the usual check for funds, the extra step matches the customer’s address with data from the card issuer and the National Address Checker, to check the cardholder’s identity, and if the card has been reported lost or stolen. It doesn’t guarantee payment.