It is becoming increasingly important for consumers to have the ability to buy goods and services without having to be physically present at the point of sale.
Card Not Present (CNP) transactions are an important part of your product/service ordering but this shouldn’t mean that you lose out to the fraudsters who seek to abuse the system.
Criminals now use this type of fraud with complete anonymity, therefore there is more risk involved in accepting a CNP order. Remember – you can be held financially accountable for a fraudulent transaction, even if the issuer has authorised it. To protect yourself against CNP fraud, there are a number of simple guidelines which, if followed, will help stop fraudulent transactions from the outset. These straightforward steps will allow you to determine whether a transaction, the card and the cardholder are genuine.
We recommend that you observe these guidelines. CNP orders fall under these categories:
INTERNET, TELEPHONE, E-MAIL
For all CNP orders, the following details must be obtained:
The card number.
The cardholder’s name as it appears on the card.
The expiry date.
The customer’s name and address.
Insist on obtaining a land line phone number
2. Internet orders
Check the time of the transaction. A large percentage of card fraud is carried out late at night.
Be wary of orders coming from free e-mail addresses. It is often difficult, if not impossible, to trace these back to the sender.
3. Telephone orders
Record the time and date of the call.
Does the customer have trouble remembering his/her address and telephone number?
4. Email orders
As with Internet based transactions, be wary of orders coming from free e-mail addresses. It is often difficult, if not impossible, to trace these back to the sender.
Make extra checks about the cardholder as outlined below.
5. Tell tale signs of fraudlent CNP transactions
Transactions from cards issued overseas.
Delivery addresses that are very different to billing addresses.
Orders shipped to a single address made on multiple cards.
You should have a detailed understanding of the risks associated with CNP transactions.
If you fail to follow the procedures established by your acquiring bank, you may end up being liable for the transaction.
7. What should you do if you are suspicious?
Make extra checks.
Check if the delivery address has been used before with different card details, contact names and/or phone numbers.
Call your acquirer (AIB, Bank of Ireland or Ulster Bank) and ask them to check the name and address of the cardholder with the issuer of the card.
If you still feel the transaction is fraudulent do not proceed with the transaction. Remember — you can be held financially accountable for a fraudulent transaction, even if the issuer has authorised it.
If you become a victim of card fraud, contact the police immediately.