Suspected fraud- what to do when credit card machine says suspected fraud?
Jun 19, 2010
in
Credit Card Machines
Today my co worker charged 0 to a Discover card and after waiting for more than 10 seconds we both were looking at the terminal ….and then it said FRAUD SUSPECTED….were we suppose to inform the cardholder…call the police…call the bank? what
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5 comments
memyselfandI on June 19, 2010 at 2:14 pm
I would start with asking the customer for picture ID and calling the 1-800 # that would be on the back of the credit card for more information.
Nikki S on June 19, 2010 at 2:14 pm
You need to call one of the three consumer reporting agencies asap, here is Equifax’s number 800-525-6285 or Experian 888-EXPERIAN
One call will alert all 3 agencies and they will place a fraud alert on your credit file for 90 days. Contact Discover and contact your local police department to file an identity theft report as soon as possible.
In Hiding on June 19, 2010 at 2:14 pm
You should have asked the person for ID, then called your manager over to ask what their policy is. Keep the ID and Discover card in your hand- you probably would have to notify the customer that this is what came up, and that you have to hold the card and phone police to notify them.
Sometimes, some accounts have instructions on them that if a charge over a certain amount attempts to be processed, the transaction must be denied. This is usually put in place by the customer themselves, but sometimes can be automatic. Perhaps the customer didn’t realize they had this hold on their account.
Michael T on June 19, 2010 at 2:14 pm
I don’t understand. You asked if you should inform the cardholder. Wasn’t the co-worker the cardholder? If not, then that is probably the suspected fraud.
OC1999 on June 19, 2010 at 2:14 pm
I have never seen that exact term. What usually happens is that it comes up with a code. At that time you are supposed to call the merchant authorization number(Discover might call it something else).
You are generally not supposed to "tip off" the customer of a possible problem. But you are also not supposed to give back the card until the auth center informs you what to do.
If you approved the sale and the card holder claims fraud. Discover will do a charge back because procedure was not followed. If this happens your manager will not be very happy with you.
Again this is what should happen. It would be best to discuss this with your manager to know what to do in the future.