APCA has published the Statistics for Card Fraud perpetrated on Australians in FY14. It reports an alarming growth in Card Not Present transaction fraud that represents 72% of total card fraud of Australian Cards in 2013 and has increased over 200% since 2008. In 2013, card-not-present fraud on Australian cards increased by 20% on the previous year to $220 million.
This alarming trend will grow as more cardholders hand over their card details to more and more merchants with lax security protocols and operate outside the banking system.
Industry measures to reduce the opportunities for such breaches, particularly through the implementation of Payment Card Industry – Data Security Standard (PCI-DSS) at merchants and service providers, are having a good effect. However, the challenge remains to encourage uptake of these standards by every organisation that handles card data.
CabFare with our acquiring bank Tyro Moneyswitch Ltd is the only taxi and limousine mobile payment provider that is PCI-DSS compliant which means that Taxi and Limousine Operators and Drivers can be assured all transactions are paid to them avoiding defrauded credit card transactions.
Card data is stolen in three ways:
The following sets out some important information for Taxi and Limousine Passengers, Drivers and Operators when using and accepting Credit and Debit Cards.
A Card Not Present transaction (CNP, MO/TO, Mail Order / Telephone Order, MOTOEC) is a Card transaction made where the cardholder is not or can not be present physically to enter a PIN or for the Merchant to visually examine the Card at the time that an order is given, service provided and payment effected. Card Not Present should be used ONLY for mail-order transactions over the telephone or Internet. Card Not Present transactions are a major route to Card Fraud, because it is difficult to verify that the actual cardholder is indeed authorizing a purchase.
A Transaction is ONLY Card Not Present when the Cardholder CANNOT be present physically when the service is provided. Since the Passenger is in the Taxi or Limousine when the service is provided it should be a Card Present transaction.
Taxis and Limousines account for a major source of Card Fraud in Australia. Much of this arises from Card Not Present transactions and Paper Vouchers, which some operators use to prey on unsuspecting customers. Storing the Card Details and passing them onto a third party exposes Drivers to accusations of FRAUD and breaches Card Industry Security Standards (PCI-DSS).
No. Since the Passenger is in the Taxi or Limousine when the service is provided it should be a Card Present Transaction. Storing the Card Details and passing them onto a third party exposes the Driver to accusations of FRAUD and breaches Card Industry Security Standards (PCI-DSS).
Is it ok if a Passenger gives the Driver their Credit Card Details and the Driver stores them in a Diary in order to fill out a Voucher after a trip and cash it at a Voucher Cashing Business or Taxi Broker as a Card Not Present Transaction?
This is NOT a valid Card Not Present Transaction as the Passenger was present at the time the service was provided. The Cardholder is breaching the EFT Code of Practice by giving the Driver their Card details and may be liable for all fraudulent transactions that occur on their card. The Driver may also be liable for any fraudulent transactions on the Card if the cardholder details are stolen from the Driver. In addition, the Driver is exposed to accusations of Fraud and theft if the Card is used illegally as the Driver cannot prove their innocence.
PIN is designed to protect both Drivers and Cardholders. The small time taken to process a PIN based transaction proves the cardholder was present and it is known as a Card Present Transaction.
Sometimes Drivers send Passengers an Account at the End of the Month and the Cardholder provides their Card Details by Phone or Internet or Mail for payment. Is this a valid Card Not Present Transaction?
YES this is a valid Card Not Present Transaction BUT only if the Driver has a Merchant Facility in their name.
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