WE POWER TRAVEL Risk Management…Credit Card Acceptance and Best Practicess Jennifer Watkins Senior...

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Risk Management…Credit Card Acceptance and Best PracticessRisk Management…Credit Card Acceptance and Best Practicess

Jennifer WatkinsSenior Manager, Credit Card Services & Fraud PreventionARCjwatkins@arccorp.com

Jennifer WatkinsSenior Manager, Credit Card Services & Fraud PreventionARCjwatkins@arccorp.com

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Our Focus for Today

• Credit Card Acceptance in the Card Not Present World

• Red Flags

• High Risk Cities

• Current trends in Fraud Schemes

• Tips for winning Chargebacks

• Dealing with “Friendly” Fraud

• Law Enforcement and Advocacy

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Evaluating The Risk Of Fraud

Risk Strategy – evaluate risk tolerance and put in place the tools to manage to it.

Keep in mind:

• In a non face-to-face, soft goods, environment, if a transaction is charged back for fraud, the merchant takes the liability for the transaction.

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Evaluating The Risk Of Fraud – Best Practices

Risk Management tools:

• Address Verification (AVS) – Billing address match.

• CID, CVC2 and CVV2 – Validation that the 3 or 4 digit unembossed number.

• 3D Secure – Verified by Visa and MasterCard SecureCode – Validates a cardholder PIN.

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Card Not Present – Red Flags

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www.arccorp.com/support/fraud-prevention.jsp

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High Risk City Pairs

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• ABJ – Abidjan – Ivory Coast

• BGF – Bangui, Central African Republic

• BKO – Bamako, Mali

• COO – Cotonou, Benin

• LFW – Lome, Togo

• OUA – Ouagadougou, Burkina Faso

• CKY – Conokary, Guinea

• CGK – Jakarta, Indonesia

• DLA – Douala, Cameroon

• KUL – Kuala Lumpur, Malaysia

• ACC – Accra, Ghana

• CMN - Casablanca

• CPT - Cape Town

• JNB - Johannesburg

• LOS – Lagos, Nigeria

• DKR – Dakar, Senegal

• TUN – Tunis, Tunisia

• FNA – Freetown, Sierra Leone

• CAN – Guangzhou, China

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Credit Card Acceptance Topics

• Credit Card Acceptance in the Card Not Present World

• Red Flags

• High Risk Cities

• Current trends in Fraud Schemes

• Tips for winning Chargebacks

• Dealing with “Friendly” Fraud

• Law Enforcement and Advocacy

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Phishing/Unauthorized Ticketing Scheme

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From: Delta Travel <reservations-travel@deltaweb.com> Sent: Monday, April 14, 2014 12:44 PM To: Subject: Fw: Your Fly Informations And Itinerary Details

Thank you for choosing Delta. This information is a copy of your itinerary and not a receipt. If you are holding this itinerary, be sure to complete your purchase before the deadline by calling 1-800-221-1280. For a complete list of world wide phone numbers, please visit our website.

Your Flight Informations : View your flight details

Your Delta Confirmation #: 99GIU3

Baggage and check-in requirements vary by airport and airline, so please check with the operating carrier on your ticket. Please review Delta's check-in requirements and baggage guidelines for details. You must be checked in and at the gate at least 15 minutes before your scheduled departure time for travel inside the United States. You must be checked in and at the gate at least 45 minutes before your scheduled departure time for international travel. For tips on flying safely with laptops, cell phones, and other battery-powered devices, please visit our website.

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Unauthorized/Stolen Tickets

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“Accra Pipeline” Website

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“Accra Pipeline”

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“Accra Pipeline”

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Corporate Booking Scheme

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Other schemes

• Relationship building – straw purchase

• 24/7 after hours support scheme

• Independent Contractor fraud

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Credit Card Acceptance Topics

• Credit Card Acceptance in the Card Not Present World

• Red Flags

• High Risk Cities

• Current trends in Fraud Schemes

• Tips for winning Chargebacks

• Dealing with “Friendly” Fraud

• Law Enforcement and Advocacy

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Credit Card Acceptance And Chargeback Rules—Merchant Responsibility

• Validate the identity of the cardholder at the point of sale and that they have authorized the purchase of the goods or services.

• Prove that the card and the cardholder were present at the point of sale.

• How?

• Obtain a magnetic stripe read, or imprint of the card and a signature from the cardholder.

• Ship the goods to the address of the cardholder and provide proof of delivery - Not applicable to electronic tickets.

• For internet transactions use 3D Secure.

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Chargeback Management – Best Practices

Responding to a Chargeback:

• Contact the customer to explain the charge.

• Provide detailed, organized documentation:

• Copy of the ticket

• Details of the itinerary,

• Copies of invoices provided to the customer

• Signed acknowledgement of the terms and conditions

• Letter detailing the experience with the customer.

• Respond as quickly as possible and within 5 days.

• If you believe this is a "friendly fraud", contact the customer.

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Credit Card Acceptance Topics

• Credit Card Acceptance in the Card Not Present World

• Red Flags

• High Risk Cities

• Current trends in Fraud Schemes

• Tips for winning Chargebacks

• Dealing with “Friendly” Fraud

• Law Enforcement and Advocacy

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Friendly Fraud

Definition:

• Buyers remorse

• A dispute over terms and conditions

• Financial difficulty

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Chargebacks Debt Resolution Through iQor

• iQor has more than 50+ years in the debt resolution business

• Top 10 worldwide - Strength and Financial Stability • 16+ years of average employee experience in

collections• Bonded, Insured & Licensed In every jurisdiction

requiring licensing• Dedicated team members who understand ‘The Airline

Industry’; Global pool of 31,000+ associates• PCI complaint - secure environment with controlled

access

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iQor’s Contact Information

• Collect on amounts as small as $200 and as old as 2 years

• For more information or to get started contact iQor:

www.iqor.com

Darrel Hewson

VP, Sales

Darrel.Hewson@iqor.com

484-242-6685

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Credit Card Acceptance Topics

• Credit Card Acceptance in the Card Not Present World

• Red Flags

• High Risk Cities

• Current trends in Fraud Schemes

• Tips for winning Chargebacks

• Dealing with “Friendly” Fraud

• Law Enforcement and Advocacy

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Fraud Campaign - Education

• Phishing e-mails

• Social Engineering

• Independent Contractor Scheme

• Working with law enforcement

• Deeper look into managing chargebacks

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What Can Be Done To Work With The Credit Card Companies?

Advocacy

Join payment industry groups:

• Merchant Risk Council (MRC) – www.merchantriskcouncil.org

• Airline Information - Airline/Travel Payment Summit(ATPS) – www.airlineinformation.org/events

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If you experience fraud or have questions, please contact the ARC

Fraud Prevention team at: fifp@arccorp.com