Do you know, credit cards can be replicated into fake and can cause loss of profits for a business
In this age where credit card payment is considered to be one of the safest way to purchase things or collect money. Card payment is considered safest because it has developed a thin layer of protection for buyers and merchants, where the banks and card brand networks directly deals with the amount transactions, cross checks the authenticity of the transaction and also gives the support to customers if they face any difficulty dealing with the merchants, if customers feel merchant is fooling them.
In spite of such security options, the use of card has some undeniable drawbacks that can lead the card holder to become a victim of fraud activities on their bank accounts. One such drawback is cloning of the credit card and using the card for whatever they want.
For these type of transactions done through, the cloned cards card holder still can recover money if some purchase is done through the card. But, the merchants face transaction dispute if they processed a transaction, accepted authorization and sent the request for funding to the bank. This type of dispute is named as “counterfeit transaction”, that mostly occurs when a fake card is swiped for the purchase.
The thing that helps to detect the transmission done is valid or not, is a merchant fails to compare the embossed account number on the card with the number printed below the embossed number. The reason that can cause such condition is the information of the magnetic stripe was not collected correctly.
For this transaction dispute, customer bank get a written request from the customer, in which customer claims that the card was present with them during the time of transaction and they did not participated in the transaction. In this condition, the bank initiates the chargeback and asks merchant to pay back to the customer. This condition of “Counterfeit transaction”, is designated with a specific reason code, by the card brand networks, that helps merchant know how to manage such chargeback cases and what to provide to the bank as proofs if the transaction is valid or not. VISA has assigned reason code 62 to this error and Master card has assigned reason code 4862.
To manage or send the information to the bank is signed receipt of the transaction. A merchant can send the print of the receipt, if the merchant have swiped the card and transaction was authorize during the sale. If the merchant finds the transaction was done from fake card, they should accept the transaction.
The only way to be safe from such transaction errors is to check carefully the card and numbers imprinted on the cards. If the merchant feels that the card is suspicion for any reason, they should avoid making payment from give card and if the payment is processed by the merchant and finds that something is wrong, they should call to the bank for any further action.
sprunki
sprunki
As digital transformation sweeps across industries, Iraq Business News covers innovative tech solutions and startups revolutionizing business practices in Iraq’s economic landscape
BusinessIraq.com emerges as Iraq’s premier business intelligence platform, delivering real-time economic insights and market analysis to global investors and local entrepreneurs. The website offers comprehensive coverage of Iraq’s dynamic business landscape, including vital updates on oil and gas developments, infrastructure projects, and financial sector reforms. Our expert team provides in-depth reporting on investment opportunities across Baghdad, Basra, and Kurdistan, supported by exclusive interviews with industry leaders and government officials. As Iraq’s economy continues to evolve, BusinessIraq.com stands as the authoritative source for trade policies, regulatory changes, and market trends affecting both domestic and international businesses. From breaking news on major corporate developments to detailed analysis of emerging sectors, our platform ensures stakeholders stay ahead with accurate, timely, and actionable business intelligence. With daily updates on economic indicators, project tenders, and commercial partnerships, BusinessIraq.com remains the essential resource for anyone seeking to understand and participate in Iraq’s growing economy.
BusinessIraq.com maintains thorough coverage of Iraq’s rapidly evolving financial services sector. Our platform reports on banking reforms, fintech innovations, and insurance market developments, providing essential information for financial professionals and investors. Special focus is given to digital banking initiatives, Islamic finance developments, and monetary policy changes that impact Iraq’s business environment. Through expert analysis and exclusive interviews, we help readers navigate the complexities of Iraq’s financial landscape.
Understanding the dynamics of Iraq’s economy is crucial, and Iraq Business News offers timely updates on sectors such as oil, agriculture, and construction. Their reporting equips businesses with the knowledge needed to make informed decisions in this rapidly changing environment.