Code 10 Authorization Procedure: Credit card fraud prevention.

Taken directly from the VISA Code 10 Procedure Guide

When you suspect fraud

If you’re suspicious of a card or cardholder at any time during a transaction authorization process, you will need to make a Code 10 authorization request.

What is Code 10?

The Code 10 authorization request alerts the card issuer to the suspicious activity—without alerting the customer. During a Code 10 call, you will speak to the card issuer’s special operator, who will provide instructions on any necessary action. This type of authorization request is the most likely to result in a call to law enforcement.

Code 10 steps

If you receive an electronic authorization, but still suspect fraud, do the following:

Keep the card in hand to quickly respond to questions.
Call your voice authorization center and say "I have a Code 10 Authorization Request."

The call will first be received by your merchant bank who may need to ask you for some merchant and/or transaction details. You will then be transferred to the card Issuer and immediately connected to a special operator. A series of yes/no questions will be asked to determine whether you are suspicious of the card or cardholder.

When connected to the special operator, answer all questions calmly and in a normal tone of voice.
Follow all operator instructions.

If the operator asks you to retain the card, comply with this request only if it is safe to do so.

For Visa Code 10 Phone Numbers:
- Call you own Merchant Provider's VOICE AUTHORIZATION NUMBER or
- Call the number on the back of the customer's credit card or
- Call the national VISA Assistance center 1-800-VISA-911

Taken Directly From:
MasterCard Code 10 Authorization Procedure Guide

MasterCard has established security procedures that can help you protect your business from loss.

When You Suspect Fraud
If your employees are suspicious about a card or a cardholder at any time during a transaction, tell them to call the Authorization Center and request a Code 10 authorization.

A Code 10 authorization request alerts the card issuer to suspicious activity—without alerting the customer. During a Code 10 call, your acquirer may ask for transaction details. Your staff will be transferred to the card issuer’s special operator who will provide instructions on any necessary action.

In-store, card present fraud
If your employees suspect fraud, train them to remain calm and call the Voice Authorization Center immediately. When the operator picks up, train your staff to say, “I have a code 10 Authorization Request,” and then follow these steps:
1. Stay calm, to avoid alarming the person who presented the card.
2. Keep the card in question in your hand.
3. Answer the operator’s questions in a normal tone, with a simple “yes” or “no.”
4. Follow the operator’s instructions.
5. For your staff’s safety, do not, under any circumstances, confront or try to apprehend the customer.
If it becomes necessary to notify the police, the operator will do so while your employee waits on the line.

Reporting Fraud
Sometimes fraud happens even with strong preventive measures in place. Keep contact information for reporting fraud easily accessible, and make sure your employees know how to use it.

Whom to Contact
If a fraudulent transaction occurs, contact the following for assistance:
- Your bank or payment processor
- Your legal counsel
- Your local police department or U.S. Secret Service office
For MasterCard Code 10 Phone Numbers:
- Call you own Merchant Provider's VOICE AUTHORIZATION NUMBER or
- Call the number on the back of the customer's credit card or
- Call the national MasterCard Assistance center 1-800-MCAssist

Taken Directly From:
American Express Code 10 Acceptance Procedures

If you are ever suspicious of a Card transaction or a customer, alert store security and/or contact American Express Code 10 Authorizations.

American Express has designed a series of simple telephone procedures should a
potentially fraudulent Card be presented to you for payment at your location.
With simple “yes” or “no” questions, our highly trained authorizer will help you
determine the validity of a Card without alarming your customer.
When you call the Authorization Center at 1-800-528-2121:

• Alert the authorizer that you may have a fraudulent transaction by
stating that you have a “Code 10.”

• Keep the Card in your hand to help you during the authorization process.

• Answer the authorizer’s questions with appropriate “yes” or “no” answers.

• Follow the authorizer’s instructions. Do not, under any circumstances, confront or attempt to apprehend the customer.

• Conduct yourself in a manner so as not to arouse suspicion of the customer.

• Remember that you may be eligible for a reward of up to $250 for returning a lost, stolen, or altered Card, especially if your actions lead to an arrest

American Express Card Authorizations
The United States . . . . . . . . . . . . . . . . . . . . . . . . . . 800-528-2121
Travelers Cheque Encashment Assistance Numbers
The United States . . . . . . . . . . . . . . . . . . . . . . . . . . 800-525-7641
Establishment Services Customer Service
The United States . . . . . . . . . . . . . . . . . . . . . . . . . . 800-528-5200
To Obtain Additional Fraud Prevention Information
The United States . . . . . . . . . . . . . . . . . . . . . . . . . . 800-528-5200

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Also, see this guide to identifying credit cards.