What is a Code 10 Call?

Is there a way to verify the cardholder’s information and alert the card network to possible fraud without offending a legitimate customer? Yes, as a matter of fact, there is.

Designed specifically for this situation, a Code 10 call is a way for merchants to notify card networks of a potential fraud situation and verify cardholder information without alerting the customer that there is something wrong.

The code 10 authorization request process is designed to elicit information from the merchant through a series of yes/no questions. This allows the merchant to give the operator the necessary information easily and safely.

How to Place a Code 10 Authorization Request

Making a Code 10 authorization request is fairly straightforward.

• Retain the card and inform the customer that you must call for authorization.
• Call the voice authorization number provided by the card issuer, and inform the operator that you need to place a Code 10 authorization request.
• Answer the operator’s questions in a normal tone of voice.
• Follow the instructions given by the operator. The operator may request that you hold onto the card or call law enforcement. If you feel threatened or unsafe, simply process the transaction and notify the card network as soon as you are able.

When Should I Use a Code 10?

A code 10 call should be made when:

• The card appears to be tampered with or the security features have been altered
• The customer is acting nervously or suspiciously
• There is a mismatch between the card signature and the cardholder’s signature
• The credit card terminal indicates the card was lost or stolen after the card has been swiped

If you feel there is a problem with the validity of the card, or if there is any indication that the transaction involves a stolen/lost card, using a code 10 authorization request is a safe, quick way to verify information without losing a potential sale.

As part of a comprehensive strategy to reduce fraud, Code 10 authorization requests offer merchants another tool to keep in their arsenal. Code 10 calls, AVS, and other anti-fraud techniques can be useful in the fight against chargebacks, but are not exhaustive.

To reduce card-not-present fraud, as well as card-present fraud transactions, protect your company with a full-service program. Merchants who deal primarily in card-not-present transactions may never have the need to perform a code 10 call, but can benefit from a complete chargeback prevention strategy.