Protect your business

With consumers having so many different options to complete payments, protecting your business from fraud has never been more critical and complex as today. So whether you accept payments in store, over the phone, or online it is important that you understand the risks and safeguards.

Fraud prevention checklist

Here are some of the warning signs for potentially fraudulent transactions and some ways to safeguard against the risk.

When processing an order

  • First-time order is larger than average
  • Same item is being ordered in large quantities
  • Multiple cards are offered to pay for the same purchase
  • Customer keeps increasing the order size
  • Repeated purchases are made within a short time
  • Can’t contact the customer by phone (MOTO orders)
  • Customer’s card can’t be dipped, tapped or swiped
  • Refunds requested to a different card/bank account

When arranging a delivery

  • Customer insists you use their shipping service
  • Billing and shipping addresses don’t match
  • Customer keeps changing delivery address
  • Customer requires urgent shipping
  • MOTO order to be picked up by a third party
  • Customer wants delivery to a PO Box
  • Order is going overseas, particularly when the goods could easily be purchased in that country

Ways to safeguard against fraud

  • Request for the card security code for MOTO orders
  • Search for customer’s name and contact details online
  • Check if the phone number is registered
  • Call customer for order verification
  • Ask customer to email or fax a copy of their driver’s licence
  • Send goods by courier to be signed for upon receipt
  • Follow guidelines as stated in our Merchant Agreement

If unsure about a transaction, call Tyro’s Fraud Analysis Team on (02) 8907 1610 or email

Credit card authorisation limits

While it is important to obtain authorisation for each transaction, this does not protect you from the risk of fraud or chargeback.

Authorisation means:

Yes Account number is valid
Yes Card has not been reported lost or stolen
Yes Sufficient funds are available

Authorisation does NOT mean:

No The person providing the card or card number is the legitimate cardholder. The card may have been stolen.

Types of fraud

The most common type of card fraud is when someone places an order over the phone or via email using one or more stolen card numbers. The actual cardholder is unaware their card details have been compromised until charges from your business appear on their statement.

If suspicious, call Tyro’s Fraud Analysis Team on (02) 8907 1610 before processing the payment. They will ask you a series of questions to help you make an informed decision about the transaction. Note: The risk of all card not present transactions resides with the merchant, not the bank or the cardholder.

This is when someone places an order, then cancels it and asks to be refunded to a different card, via bank transfer or in cash. They aren’t interested in buying your goods, but trying to get you to transfer money to them.

Eg: A customer makes a booking at your hotel. They call a few days later to cancel and request for the refund to be credited to a different card number or to a bank account because they have allegedly lost their card. Later you receive a chargeback for the original transaction.

What to do: Always refund to the card number that the transaction was made on. If the customer states they lost their card, advise them to contact their bank and raise a chargeback.

This is when a customer asks you to debit their card and transfer the funds to a third party. They aren’t interested in buying your goods, but trying to get you to transfer money to them.

Eg: An overseas customer places a large order of heavy items to be shipped overseas and requests shipment be made through their preferred shipping agent. They request you to debit their credit card for the cost of the shipping and transfer the funds to the shipping company via wire or bank transfer. The shipping container doesn’t arrive and you receive chargebacks for all transactions processed to the customer’s card.

What to do: Never process a transaction to pay for external third-party costs (costs not related to your business).

This is when a person tries to use a counterfeit card in store that will not tap or swipe because the information on the card is incomplete.

Eg: A customer is in store and trying to pay for a high-value item. The card they have presented you with isn’t working. The customer tells you this happens all the time and you should manually enter the card number. Later you receive a chargeback for the transaction.

What to do: Always dip, tap or swipe the card for card present transactions. If the card presented does not work, ask the customer for a different card. Never enter the card number manually.

Suspect a transaction is fraudulent?

Call Tyro’s Fraud Analysis Team immediately on (02) 8907 1610.

Disclaimer: Tyro makes no representations and gives no assurances whatsoever in relation to the credit worthiness of any person presenting a charge card or the performance of any agreement or arrangement between the merchant and any person, body corporate or association conducting a charge card scheme.