EMV Fraud Liability Shift

Learn how you can help against fraud.

North American Bancard (NAB) takes credit card fraud seriously, and with fraudsters (the ones who perform the fraud) changing their tactics each and every day, we need our merchants to stay vigilant against fraud. We believe education and awareness are the best ways to stop fraud in its tracks.

We aren't making the claim that we have the silver bullet to stop fraud, but a well-educated, knowledgeable merchant is the best defense against these fraudsters. And with these ill-willed individuals responsible for millions of dollars in fraud via chargebacks it's in the merchants' best interest to be on the lookout for the telltale signs of someone doing something not on the up-and-up.

Merchants who have a merchant services account with NAB has access to the Card Acceptance Guide located at nabcard.com/cag. You can learn in-depth about how to handle and spot fraud. We’ve picked some things a first-time merchant might have to deal with on day one of accepting credit card payments.

When using a POS system:

• When possible, always swipe a physical card. If you key in the card information you open yourself up to higher fees and the possibility of chargebacks because you opened the door for human error— something fraudsters feed on.
• Clearly post your return policy and print it on the receipt so there is no ambiguity at the time of a return.
• If you have a PIN Pad device, ask your customer if they’d like to run their card as a debit. Not only will it cut down on fees, but it will be safer because the PIN helps validate the customer.

Phone orders

Try to avoid phone orders if your business does not typically take them. Fraudsters like to place orders on bogus or stolen credit cards, and then claim they can't make it in to get the merchandise and send a service or proxy to pick up the merchandise. Once the items leave your store, you truly don't have a clue where they ended up and open you up to a fraudulent purchase or potential chargeback situation.

Here are a few ways to avoid falling victim to telephone and mail order scams:

• Obtain authorization for every sale.
• Only ship to permanent addresses, avoid sending to a P.O. Box, or hotel lobbies.
• Send a copy of the sales draft and order form to the customer and be sure to maintain copies for your records.


Internet fraud may soon see an uptick in potential fraud cases because of the adoption of the EMV chip card. The EMV card does not offer added security for e-Commerce transactions, and, in fact, the educated guess is online fraud will increase once the EMV card becomes the norm. That doesn't mean that online transactions aren't safe. With a few fraud-fighting ideas, listed below, web transactions are safe.

• Post policies clearly so customers can read them and see you're up-to-date on your fraud knowledge.
• Be sure every piece of information you ask for is provided, and if it’s not, reject the order.
• If there is a difference between the ‘bill to’ and ‘ship to’ address, proceed with caution. It may be just someone sending a gift, but if the transaction feels fishy, then either call to confirm or simply cancel the order.

There are so many more types of fraud, from skimming to deceptive deliveries that you can learn about at nabcard.com/cag. Take the time to familiarize yourself with the different types of fraud to help us knock out fraud and protect your business.

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