Operating Instructions

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Merchant Operating Instructions: Authorisation and Referrals

This section deals with standard authorisation procedures. Find out more about Card Not Present Transactions.
 
Authorisation and referrals are ways of checking that the card has not been reported lost or stolen, and that there is enough money in the account at the time of the request to cover the purchase. It’s important to understand that authorisation and referrals do not guarantee payment.

• Making a referral call
• Using paper back-up when your terminal isn't working
• Suspicious transactions
• Transaction changes after authorisation and before processing/banking
• Split transactions

• Making a referral call 
• In the majority of cases, if you have an electronic terminal, then the authorisation check is automatic. Sometimes your terminal will prompt you to make a manual authorisation call, known as a referral.
  
  If you have a mobile or portable terminal, this will have been handed to the customer to input their PIN.  You should always take back the terminal from your customer as soon as the PIN is entered.  That way the transaction or, if required, a referral call can be made.
   
  You must make this call at the time of transaction, while the cardholder is present, and you are holding the card. Do not hand the card back to the customer until you have received authorisation.
  
  Security questions
  During some calls, the cardholder may need to answer one or more personal security questions. Explain that this is part of the card issuer’s standard security procedure. The Authorisation Centre will usually ask to speak to the cardholder directly. Once your customer has answered the questions, they should pass the phone back to you. You should not use any information which is given to you by the cardholder. Only the Authorisation Centre can give you an authorisation code. You must not accept an authorisation code from anyone else (especially your customer).
  
  If the transaction is authorised
  You will be given an authorisation code which should be keyed into your terminal when you are prompted. There's more information in your Terminal User Guide about keying the code.
   
  If you are processing on paper, write the authorisation code clearly on the voucher in the space provided.
   
  If the transaction is declined
  
  • Explain that the transaction has not been authorised and give the card back to the cardholder, unless the Authorisation Centre asks you to retain it and it is safe to do so.
  • If your customer asks why, advise them to contact their card issuer – there is normally a helpline number on the back of the card.
  • Remember, transactions are declined for many reasons – it may not be your customer’s fault.
  • Make sure you destroy any partially completed sales vouchers in front of your customer.
  • If your customer still wants to go ahead with the purchase, ask them for an alternative payment method. Remember to check any new card carefully. Find out about Reducing Fraud.

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• Using paper back-up when your terminal isn't working 
• If your terminal has stopped working, you will need to advise Streamline or your terminal provider as soon as you become aware of the problem.
  
  In the meantime, you may want to consider ordering a back-up pack by phoning the helpdesk on (08457 616263).
  
  You will need to call for authorisation for all transactions that you process on a fallback voucher.
  
  Back-up pack price list:
  
  Manual Imprinter £15 + VAT
  Plate £3 + VAT
  Plastic £3 + VAT
  Vouchers No charge

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• Suspicious transactions 
• For card present transactions, if you are suspicious about a transaction, you can make a 'Code 10' call to the Authorisation Centre who will provide you with instructions. A 'Code 10' call is an additional security check that is available should you become suspicious at any time during a transaction, even if the card has gone through the terminal and has been authorised. Please note, however, that even if this call leads to authorisation, the card payment is still not guaranteed.
  
  Make a 'Code 10' call when:
  
  • You are suspicious about the card, the cardholder or the circumstances of the sale.
  • You are specifically requested to make the call by Streamline.
  • Your terminal prompts you.
   
  How to make a 'Code 10' call (if terminal refers)
  Call the Authorisation number immediately (0845 7 600 500).  Enter your Merchant Number when requested and select the option for ‘Code 10’.  The operator who answers will be aware that this is a ‘Code 10’ call.
   
  If the sale is approved, complete your transaction in the normal way.
   
  If a decline is provided, cancel or void the transaction in question.
  
  A ‘Code 10’ call simply tells Streamline that you are suspicious about the card or the cardholder. Streamline will now alert the card issuer of your suspicion and they will carry out their additional checks.
  
  If a ‘Code 10’ call leads to authorisation this is not a guarantee of payment.
  
  How to make a 'Code 10' call (if transaction has completed)
  If you believe you have a ‘Code 10’ situation after the transaction has completed on the terminal you should call the Authorisation Centre immediately (0845 7 600 500).
   
  Enter your Merchant Number when requested and select the option for ‘Code 10’.  The operator who answers will be aware that this is a 'Code 10' call but you will need to inform them that no authorisation code is required.  You then need to follow the instructions provided by the operator.
   
  If the sale is approved, no further action is required.
   
  If a decline is provided, the operator will inform you what action is required to reverse the transaction.
  
  If the Authorisation Centre asks you to retain the card 
  Explain politely that the card issuer has asked you to hold onto the card. Your own company policy will decide whether you detain the cardholder or call the police.
   
  NEVER PUT YOURSELF, ANOTHER MEMBER OF STAFF OR A MEMBER OF THE PUBLIC AT RISK.
  
  Even if the Authorisation Centre does not ask you to retain the card, you may decide that a card or a transaction is suspicious – for example if you have identified it as counterfeit. Find out more in the Card Recognition Guide. Card thieves act fast, and will often try to use a card before the owner notices that it has gone.  In these instances you should not proceed with the transaction.
   
  There may be a reward for recovering a card that is being misused. Find out more in Reducing Fraud.

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• Transaction changes after authorisation and before processing/banking 
• Sometimes, you need to make changes to a transaction after you have obtained authorisation. For example, if your customer decides to buy something different, or not to go ahead at all.
  
  If you process payments electronically, you can cancel the sale on your terminal and it will make the adjustments automatically, but this may take a few days to appear on the cardholder’s statement.
   
  If you have used a paper voucher for the transaction, cancel it by writing "CANCELLED" across all copies. Then print new vouchers and call the Authorisation Centre again with the following information:
  
  
  • Card number – 12 to 19 digits across the centre of the card
  • Issue number or start date – for UK-issued Maestro and Solo cards
  • Card expiry date
  • Your Merchant Number – use a sticker from your Streamline Welcome Pack and keep by your telephone
  • Authorisation number
  • The original transaction amount – including any amount of cash back
  • The new transaction amount – if it is completely cancelled, just say that it is cancelled.
   
  A refund would only need to be processed in the event that the transaction has actually been processed/banked. Find out more in Refunds.

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• Split transactions 
• Do not allow customers to split the sale into two separate amounts on one card or between different cards in order to avoid obtaining authorisation for the full amount. This requirement forms part of your Streamline Contract and may result in the suspension or removal of your facility if you do not comply with it.

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