Fraudsters have convinced some retailers to allow them to personally enter the card number, expiry date and security code into their card machine. Where this has happened, the retailer has not verified the card properly. The card details entered by the fraudster were from a stolen or cloned bank card.  The retailer verified the signature but did not match the card details on the bank card to that on the signature receipt signed by the fraudster. Alerted to the fraudulent transactions by the rightful cardholders, their banks then processed a chargeback for the scammed funds which in turn have been charged back to the retailers concerned.

Protecting yourself from fraudulent activity

To combat payment fraud, you are encouraged to review your payment card acceptance operating procedures issued by your card acquirer (Lloyds Bank Cardnet) which contains information including checking the authenticity of payment cards and accepting non PIN verified or contactless transactions.

In addition, in view of the recent reports of this card payment scam, PayPoint have reviewed the usage of the card holder present manual keying capability offered by Visa and Mastercard, across their card services estate. As this function is used by less than 5% of their card services estate, PayPoint have taken the decision to disable it. This will happen automatically within the next 28 days when your payment terminal updates.

However, if you would like this function disabled immediately, you can action this by following the below simple steps on your PIN pad:

  1. Press Menu
  2. Press F3
  3. Press Enter
  4. Type in 81
  5. Press Enter
  6. Swipe the supervisor card when prompted by the PIN pad
  7. Press Enter

Alternatively, if you would like card holder present manual keying capability to remain, you can request this by sending an email with the subject line “Manual Key Enable” to no later than 12 January 2018.

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