Most of the anti-fraud tools available to merchants are designed to work automatically according to cold machine logic, using algorithms to block fraudulent transactions behind the scenes. In the card-present environment, however, merchants and their employees must sometimes make very human decisions to stop fraud while it is taking place. This may involve placing a Code 10 call to alert the issuing bank to possible fraud without tipping off the suspicious customer. How can merchants know when it’s the right time to call in a Code 10?

To the customer in the store, the Code 10 call sounds like a normal voice authorization request, with the merchant not saying much beyond answering “yes” or “no” questions. To the issuing bank, however, “Code 10” signifies that the merchant suspects possible fraud: either that the payment card has been stolen or tampered with, or that the customer is not who they claim to be.

For merchants and their employees, it can be difficult to make a confident decision about when and if to make a Code 10 call. It can also be nerve-wracking, as the call may have to be made in front of a person possibly engaged in criminal activity. Of course, merchants and workers must put their own safety first, but if they do not believe that placing the call will put them in danger, the decision should be made based on whether reliable indicators of fraud are present. Note that you can place a Code 10 call after the fact, but it will be too late to stop the transaction.

Full Text:
https://www.chargebackgurus.com/blog/code-10-authorization-calls-chargeback-fraud

©Chargeback Gurus 2020
Production: Courtney Freeman 
Narration: Phil Claffey