When do you need to take a manual imprint? Why does a key entered face to face transaction occur? If the magnetic strip is bad or if there is a card reader malfunction you won’t be able to get proper swipe. If you put a card present transaction on a card present merchant account, a signature on a receipt is not enough to protect you from a chargeback if the customer disputes the charge. You have to prove that the card was present with a physical imprint to protect yourself in a fraudulent transaction dispute.

If you are unable to take an imprint with an old fashioned imprint machine with metal plate, then get a pen and paper and pass the pen back and forth until you get the imprint.

A power outage or special off site events are additional reasons why you may need to get a card imprint. We send all merchants a metal plate for manual imprinting, and many ask why they ever would need it. The manual imprint is required for all key entered face to face transactions.

How can technology increase protection from card present fraudulent transactions?
CenPOS smart payment engine has many functions to reduce risk. For example, a standard set up might require the cashier to enter the last 4 digits of the credit card. Fake  credit cards are a major crime problem in the US. Most fake cards have a valid credit card number on the front, but the number won’t match the magnetic strip information on the back. The logic of CenPOS will protect you from this type of attempted credit card fraud.

When a card is declined for a last 4 digits mismatch NEVER attempt to put through the transaction by overrides or any other method. Even if you get the transaction through, you will lose any chargeback fight because there will be a record of the failed attempt with the reason code for mismatch.

This is just one example of many features CenPOS has built in to protect merchants from both internal and external fraud. Contact Christine Speedy at 954-942-0483 for additional information on CenPOS technology and other merchant services.

Our solution offers extremely robust chargeback management. How does this compare with Paypal?
Unfortunately, we can’t show you the paypal screens due to copyright issues.

Since Paypal is web based, they do have a web based solution. Buyers and sellers alike manage disputes and chargebacks in the Paypal Resolution Center. There are two main types:
Disputes:
- Buyer and seller negotiate to resolve issue. Communications are via email using the Resolution Center.
- Dispute is resolved or escalated to PayPal claim.
- Paypal investigates and resolves the claim. This section says they “try to resolve within 30 days.”
Unauthorized activity:
- Buyer says they didn’t make the purchase. A lot of times the buyer may not remember who they made the purchase from.
Paypal reviews the claim and asks seller to respond.
Seller are notified and have 7 days to respond. Paypal resolves the claim.

A more robust solution works like this. First, the buyer calls the credit card company to complain. They file a form which asks questions like ‘have they contacted the merchant and attempted to resolve first’. Ultimately, the payment processor sends notification of the dispute via email, fax, or mail. The most common practice is via mail. The clock is ticking since you only have so many days to respond.

The best system sends you an email alert so you can respond quickly.
With the addition of a scanner, you can even respond to retrieval requests right from your PC and upload documentation.

Compared to most processors, the Paypal solution is very robust so you can respond quickly. Where it falls apart from the merchants perspective, ie numerous complaints from merchants, is the unilateral decision making and sometimes long process that can last months.

The optimum solution is two-way communications. You can manage all chargebacks from a web based interface. The processor will give you a decision within 14 days after you respond. They will tell you if additional information is needed. If you think the disagree with a decision, you can add additional documentation via file upload, fax or snail mail.

The first step is to make sure you have a system to respond to chargebacks.

Q: How quickly do I have to respond to chargebacks?
A: within 10 calendar days

The most common scenario is for your payment processor to fax a copy of the complaint. The clock is ticking. Many lose money by simply not responding in time. Then the retailer looks up the details in their files, or sometimes online.

With the right processing solution, you can streamline this and reduce lost money from slow response time. For example, we recommend all hotels use a processor that has an automated response system. Chargebacks are directed to the merchant account electronically and the required response is sent automatically. With a proper set-up, instead of losing money by not responding in time, 80% or more of potential chargebacks are eliminated without any intervention by your staff at all!

You’d think this would be common, but it’s not. Many, many processors are not set up with the more advanced technologies to enable auto-responding, and even if the processor offers it, the person who set up your account may not have been trained to set you up properly.

One last note- you can be notified via email (you set up the parameters) of chargebacks, their status, and even manage them from a single online console, creating a valid record of all actions. The more advanced systems let you upload documents that support your response.