Transaction Processing & Electronic Payment Solutions

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• Credit & Debit Card Processing
• eCommerce Solutions
• Customized Gift Cards
• Loyalty Rewards Programs
• Check Acceptance Services
• Other Services

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Merchant Services for your business.

Card-Not-Present Transactions

Card-not-present transactions are those where neither the card nor the cardholder are present at the point-of-sale, e.g. orders over the Internet, by mail, telephone, or fax. Accepting credit card transactions when the card is not physically present at the point of sale is risky because all the rules and regulations are written in favor of the cardholder and all risk of fraudulent sales are placed upon the merchant. Remember, credit card transactions are convenient forms of payment, not guaranteed forms of payment, especially when the card is not present and cardholder signatures are not obtained. We recommend that you review Visa’s information on card-not-present transactions. Visa Card-Not-Present

Helpful Hints to Reduce Chargebacks and Risks

• Request and validate the Credit card Validation (or Verification) Value. The CVV can be submitted in the electronic authorization request or can be used when calling in for an authorization
• Verify the customer's billing address, either electronically or by an automated phone system (Address Verification System - AVS)
• Check your delivery service contract for who is responsible for merchandise not delivered
• Get a signature for each delivery
• Keep all delivery records
• Do not force through any sales for which you have received any declined response to your authorization request
• If the sale is on a credit card, do not refund in cash or by check. Refund sales on the same card account that the purchase was made on
• Include your common DBA and customer service number on the Cardholder's transaction statement
• Clearly communicate any and all delivery charges, restocking or other fees
• Clearly explain any return policies and offer documentation of this policy with each sale
• When working on a chargeback, document efforts to satisfy the customer
• Respond to all Chargebacks, even the small ones (remember, this is your customer)
• Duplicate charges, or installment plans, unless otherwise stated, require an authorization for each sale

Types of Suspicious Behavior

Please consider that these are only indicators of higher risk transactions. One behavior alone may not be a concern.

• New customer attempts to make a very large credit card transaction
• Customer doesn't know the Credit card Validation found on the back of the Card, indicating that they don't have the actual Card
• Customer’s address does not match when attaining an Address Verification
• Shipping to an address other than the billing address
• Customer asks that you try lower dollar amounts when a decline message is received
• Customer instructs you to try different expiration dates when initial attempts fail
• Customer hesitates, or has a long pause, when asked for personal information
• Customer repeatedly sends e-mail messages requesting confirmation of shipment
• Customer attempts to place multiple orders to the same address
• Customer attempts to purchase large quantities of a single item
• Customer purchases several large-ticket items, which do not go together, e.g., appear random
• Customer calls a few minutes before closing and wants several large-ticket items
• Customer requests that sales be split up to avoid paying "import taxes" and/or "duty fees"
• Customer requests shipment to an overseas destination
• Customer seems overly concerned about delivery time frames to overseas destinations
• Customer attempts to place a large order using several credit cards to obtain the total authorization amount
• Customer offers the phone number to an authorization center to speed up the credit card approval process
• Customer has little regard for price
• Customer shows little or no concern for return policies, manufacturer warranties and/or rebates when purchasing in large quantities

When deciding on payment solutions in a "Card-Not-Present" environment, you will want to work with a professional who can help you address:

• Risk (best practices, fraud, and chargeback risk)
• Technology (acceptance method based on transaction volume and instant fulfillment)
• Rates & Fees (merchant credit and check acceptance cost)

First National Merchant Solutions will provide you with the education to help you safely implement a payment solution that best meets your needs.

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