• Do not accept cards that are being used prior to, or after, their validation dates. • Of course, compare signatures with those on sales receipts. If they do not match, do not hesitate to ask for identification. • Never accept an unsigned card. • Check the signature panel for signs of tampering such as scratching, white tape or correction fluid. • The magnetic strip on the back of the card should be smooth and not show signs of tampering. • If it is a swipe card, make sure the numbers on the elec-tronic terminal and sales receipts all match the number on the card. The key is to be vigilant, research service providers and not be seduced by deals that seem to good to be true. If a card appears suspicious, in any way, you can contact your services provider to report the card while the patient is still present. (You are encouraged to familiarize yourself with the procedure for this, with your particular provider, in the event that you have suspicions about a card.) Your services pro-vider may advise that you retain the card but it is advised that you do not try to detain the person or try to apprehend them in any way, should they leave your practice – rather, you are advised to note the person’s appearance and dress and be pre-pared to report those. SKIMMING Another common type of fraud is known as skimming. Skim-ming refers to the fraudulent practice of capturing account in-formation from the magnetic stripe of a debit or credit card in order to make a counterfeit card and can be perpetrated by other clients surrounding the person paying while the card transaction is in process, or even by staff members within a business or practice. In an effort to combat card skimming and the production of counterfeit cards, the payment industry in Canada is transitioning to a new generation of payment card technology, known as chip. Chip technology will significantly reduce card skimming and the production of counterfeit cards. Jeff van Duynhoven offers these steps for chiropractors to take to prevent skimming from occurring in their practices: • If a client has a chip card and your point of sale termi-nal is chip capable, remind your customer to insert the card. Avoiding the swipe will reduce the potential of your customer’s card being skimmed. • Treat your PIN pads like cash. Keep PIN pads out–of sight when not in use, and lock them up at closing. • Inspect your point of sale equipment regularly, includ-ing serial numbers, wires and cables. If any equipment looks unfamiliar, appears altered, or is missing, notify your acquirer immediately. • Install your debit terminal so that customers have enough room to comfortably shield the PIN pad when entering their PIN number. 82 • CANADIAN CHIROPRACTOR | SEPTEMBER 2010 • Keep all transaction records on file (for the length of time specified in your processing service agreement), along with employee shift schedules and supplier information. CREDIT CARD PROCESSOR FRAUD Another type of fraudulent activity that can affect business owners is that perpetrated by providers of the credit/debit card processing companies. Some of these companies have unethi-cal practices, and once snagged into a contract, practice owners can have much difficulty untangling themselves. These companies may offer contracts with low fees cover-ing card transactions, machine rentals and other related costs. They may stipulate that the pratice/business owner can opt out of the contract if he/she is not satisfied with the company’s ser-vice, and/or offer a lease period after which the business owner will own the equipment. However, too many practice owners have entered into agreements with these companies only to find that they are, in fact, tied to contracts that flow, seamlessly, into a longer contract period (and that opting out is an expen-sive proposition); that the company outsources its processing functions, which increases the fees initially purported (one of the “fees are subject to change” caveats); that statements aren’t exactly transparent; or that owning the processing equipment actually requires paying out even more money. Practice owners are advised to research the card processing company they will use very carefully, reading all fine print, ask-ing for testimonials, seeking legal advice, determining whether other business owners have had problems with the company in question and basically keeping in mind that if a deal sounds too good to be true, it probably is. Furthermore, once a contract has been signed, practice owners are advised to continuously maintain vigilance with regards to card processing invoices and bills – it becomes too easy to get lulled into a pattern and forget to check invoices, but this might be necessary to protect the practice owner from fraudulent processing practices. The good news is that the federal government has devised measures to put the brakes on this type of fraud and has in-cluded these in the credit and debit card code of conduct draft that was released in Novembe 2009. The draft now contains a provision that will allow merchants to exit a contract without penalty as well as rules to encourage more disclosure on aver-age rates.1 Many merchant services are available through most banks. If a practice owner wishes to investigate alternative providers, it is advisable to hook up with a bank manager he/she is familiar with, and trusts, for guidance regarding dependable services and, perhaps, some insights on who has already been identi-fied for suspicious and/or fraudulent activities. The key is to be vigilant at all times, research service providers carefully prior to entering into contracts, and not be seduced by deals that seem too good to be true. Canadian Chiropractor would like to thank TD Merchant Ser-vices for their help in preparing this article. For more information, or to speak with a TD Merchant Services representative, please visit www.tdcanadatrust.com/merchantservices. References 1. “Bad Credit: How to pick the right processor,” Canadian Florist, April 2010. www.canadianchiropractor.ca
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