Code 10 Calls – What to Do When You Suspect Fraud

If a merchant is suspicious of a card or cardholder at any time during a transaction authorization process, they will need to make a Code 10 authorization request. The Code 10 authorization request alerts the card issuer to the suspicious activity—without alerting the customer. During a Code 10 call, you will speak to the card issuer’s special operator, who will provide instructions on any necessary action. A merchant can initiate a code 10 call by calling into the voice authorization number provided to the merchant for regular transactions, and asking for a “Code 10 authorization request.” To reduce suspicion that something may be wrong, a merchant may want to keep the situation low key by indicating that there may be a problem with the magnetic stripe on the card and that they are calling into the voice authorization hotline.

If a merchant receives an electronic authorization, but still suspect fraud, they should do the following:

• Keep the card in hand to quickly respond to questions.
• Call your voice authorization center and say "I have a Code 10 Authorization Request.

A Code 10 call will first be received by the merchant bank that may need to ask for some merchant and/or transaction details. The caller will then be transferred to the card issuer and immediately connected to a special operator. A series of yes/no questions will be asked to determine if there is suspicion of the card or cardholder. When connected to the special operator, the caller should answer all questions calmly and in a normal tone of voice. The merchant will follow all of the special operator’s instructions. If the operator asks that the card be retained, comply with this request only if it is safe to do so. Explain to the cardholder as politely as possible that this is at the request of the card issuer. If the merchant does not feel safe making this call during the card transaction, the authorization center can still be called after the consumer has left the business. This may help to prevent more fraudulent transactions at another store.