Is Your Business Fishing for Trouble?
May 22nd, 2007
Fishing happens when merchants accept cards that have been declined for an authorization amount. Merchants try to re-scan the credit card for a lower authorization amount, hoping to make the sale. I know what you’re thinking. If the credit card is accepted for a lower amount, why not accept it? It seems harmless enough, right?
In fact, fishing is against Visa and MasterCard regulations and puts your business at risk! When you or your employees fish for an authorization, you could end up paying for the transaction out of your own pocket.
When a credit card is run at your check-out area, the first response you receive is FINAL. If you allow the card to be used for a lower amount on the same day, the card issuer can dispute the transaction and deny you the funds for this sale.
So instead of letting your customer walk out the door with free merchandise, stick to the rules and stay out of trouble! When a credit card is declined at your register, ask for another form of payment from your customer. Fishing will never help you profit, so don’t risk it!
Entry Filed under: Advice,Rules and Regulations
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