Scam Targeting Businesses Accepting Credit Cards

A "customer" enters a business and makes a purchase using a credit card. The proprietor attempts to process the transaction, but every authorization attempt is declined. The cardholder tells the merchant he will call the card-issuer via his cell phone. The individual allegedly makes the call to his bank, but in reality dials the number of an accomplice. The cardholder hands the phone over to the merchant so the person on the other end can provide a false authorization number. The merchant then unknowingly forces the sale through the terminal, using the illicit code. Due to an invalid authorization being used such a transaction will almost certainly be disputed, causing the merchant to take a total loss. Merchants should only input codes obtained directly from the voice authorization center

Another scam similar to the above is the "customer", presents a Visa Gift Card and after it is declined; the phone call to the accomplice which results in a credit in the amount of the sale going back on the Visa Gift Card, while the merchant thinks it is authoring the sale.

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

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