Fraudulent activity is an ever-present threat to your business, and one of the most common methods takes advantage of manual card entry. It is important to be on the lookout for the warning signs of this kind of fraud as, if it is successful, your business is liable.

If a credit card is processed manually and later disputed, the merchant will be liable with no option to dispute a chargeback. Even if a merchant has EMV-capable POS equipment, if a card is manually run, the merchant has not complied with EMV procedures and is liable for any chargebacks. 

Warning Signs

• Using a card that fails with the EMV chip, contactless and magnetic strip
• Requesting that a card number be entered manually by the clerk
• Attempting to manually enter a card number on the PIN pad with no card present

What You Should Do

If a customer is paying by card but the EMV chip, contactless and magnetic strip all fail, you should ask for another form of payment. Merchants are not required to process manual credit card transactions as a backup.

To view the card brand rules, visit the Payment Solutions page on CHS Portal. If you have any questions about potential fraud or fraud prevention, please contact CHS Payment Solutions at 800-852-5301.