Preventing Credit Card Fraud

Question 1

The bank with the relationship with the merchant. The bank acquires—or accumulates—the credit card purchase slips for processing into the payment system.

Answer 1

Acquiring Bank

Question 2

An additional security feature that indicates that the person presenting the card also knows personal information about the cardholder, such as the home billing address for that card.

Answer 2

Address Verification System (AVS)

Question 3

A list provided by a company detailing the employees who are approved to travel using the company’s payment arrangements.

Answer 3

Approved-to-travel List

Question 4

The last copy of an airline ticket.

Answer 4

Auditor’s Coupon

Question 5

The indication from the credit card company that the card is in good standing and has not been reported stolen and that the amount is not over the credit limit.

Answer 5

Authorization Code

Question 6

A three-digit security number in italics is imprinted in the signature panel for MasterCard, VISA and Discover. The American Express card number is printed on the face of the card and contains four digits. It is generated with a mathematical algorithm to match only the account number of that card. When someone is able to give this number, it proves that he or she has the card in hand.

Answer 6

Card Validation Code

Question 7

An amount that is charged back through the system to the merchant. Generally, the bank notifies the merchant with a debit memo, which deducts the amount of the transaction from the merchant’s account.

Answer 7

Chargeback

Question 8

The computer system used to make reservations; either the general system used for airlines or a particular system used by the agency.

Answer 8

Computer Reservation System (CRS)

Question 9

A plastic card issued by a bank or credit card company to its client with an account number specific to that client. The bank or credit card company promises to pay for the purchases made by the client with that card, provided the merchant verifies that the card is in good standing.

Answer 9

Credit Card

Question 10

Associations (such as MasterCard and VISA) comprising all member banks (both acquiring and issuing banks). The association authorizes, clears, and settles credit card transactions. The association also is responsible for supporting the card trademarks, including legal, marketing, security, technical, and administrative efforts.

Answer 10

Credit Card Associations

Question 11

A document that reverses a charge made by a client.

Answer 11

Credit Voucher

Question 12

A global standard in which credit cards carry computer chips that cut down on counterfeiting.

Answer 12

EMV

Question 13

An act or statement that attempts to deceive, trick, or cheat.

Answer 13

Fraud

Question 14

The bank with the relationship with the customer. It “fronts” money for purchases immediately back to the acquiring bank and then to the merchant, and subsequently collects the money from the customer.

Answer 14

Issuing Bank

Question 15

The acquiring and issuing banks involved in credit card associations.

Answer 15

Member Banks

Question 16

A number punched into the system when a debit card is presented for payment to prove that the person using the card is the rightful cardholder.

Answer 16

Personal Identification Number (PIN)

Question 17

An electronic terminal connected via modem to the credit card association; used most often in retail establishments to obtain authorizations.

Answer 17

Point-of-sale Terminal (POS)

Question 18

The person listed on the account as allowed to make purchases with that credit card.

Answer 18

Rightful Cardholder

Question 19

A report made to the credit card companies, generally weekly, about that week’s credit card transactions.

Answer 19

Sales Report

Question 20

A hard-copy paper charge form detailing the sale.

Answer 20

Sales Slip

Question 21

A special small character on the front of a credit card, stylized to show that the card belongs to the issuing company.

Answer 21

Security Character

Question 22

A permanent record of a person’s signature or an imprint of a person’s credit card, which proves that the card belongs to that person.

Answer 22

Signature-on-file or Card-imprint-on-file

Question 23

When a credit card is swiped through an electronic point-of-sale terminal.

Answer 23

Swipe

Question 24

A program created by MasterCard to identify fraud-prone merchant categories or specific merchants that are likely to commit fraud. Other credit card companies have similar systems.

Answer 24

System to Avoid Fraud Effectively (SAFE)

Question 25

Why use credit cards?

Answer 25

Because they are convenient for the traveler and they represent an efficient, speedy payment system for the agency or the merchant the card represents.

Question 26

How prevalent is credit card fraud?

Answer 26

Despite the fact that fraud affects only a fraction of one percent of all purchases made with plastic, it represents one of the biggest concerns among consumers and businesses.

Question 27

Timeline for chargebacks

Answer 27

Total response period is 30 days for inquiries and 45 days for chargebacks. Respond rapidly to any requests for information.

Question 28

Mastercard account numbers begin with

Answer 28

5

Question 29

VISA account numbers begin with

Answer 29

4

Question 30

American Express account numbers begin with

Answer 30

37

Question 31

Discover account numbers begin with

Answer 31

6

Question 32

EMV/Credit Card Chip prevents…

Answer 32

anyone from copying the card but does not stop theft of online payment credentials.

Question 33

Validation Code Abbreviations

Answer 33

CSC - Credit Security Code
CVV - Card Verification Value
CVC - Card Verification Code
SPC - Signature Panel Code

All are the same thing!

Question 34

PCI

Answer 34

Payment Card Industry (Security Standards Council)

Question 35

Account numbers on the front and back of the card, and on the magnetic strip, should ______.

Answer 35

match

Question 36

The person’s _______ is very similar to the one on the back.

Answer 36

signature

Question 37

The _______ must move or appear three-dimensional when the card is tilted back and forth.

Answer 37

hologram

Question 38

In addition to all the credit card system safeguards, it’s always a good practice to _______.

Answer 38

know your client

Question 39

The card validation code (or identification number) is located on the _____ side of the card, with the exception of _______ where it is located on the _____ side of the card.

Answer 39

back
American Express
front

Question 40

List the 4 thing you should have for taking credit card payments over the phone.

Answer 40

1. Account number
2. Expiration date
3. Full billing address for the card
4. A copy of the front and back of the credit card and a driver’s license if allowed under PCI Security Council requirements.

Question 41

The red flags of fraud

Answer 41

1 The small, printed four-digit number above or below the embossed account number does not match the first four digits of the embossed number.

2 The word “Void” is on the signature panel.

3 The card’s signature panel is all-white and has no background printing.

4 The signature on the sales slip clearly doesn’t match the one on the card.

5 The card is unsigned, and the cardholder declines to sign it and present a second form of identification.

6 Client of passenger name is new to your agency.

7 Caller ID shows the client as non-local, or no Caller ID information is displayed.

8 Clients can only be contacted only via phone with a non-local area code.

9 Clients use fictitious address or P.O. Box, or the client has no local address.

10 Flights originate outside of your country of origin, or flights are international-to-international.

11 Client doesn’t have a budget or ask questions about pricing.

12 Passenger is not the cardholder.

13 Client uses one credit card for multiple bookings and/or multiple passengers.

14 Client uses multiple credit cards to pay for the trip, or multiple cards if the first one is rejected.