Operating Instructions
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Merchant Operating Instructions: Card Present Transactions
These are face-to-face transactions where your customer and their card are with you
at the point of sale.
- Chip and PIN
- Chip and PIN is the usual way to accept card payments on your terminal when the card and cardholder are present. Some customers, however, will continue to sign to authorise payments and this could be due to an impairment that prevents them from inputting their PIN. Some cardholders will still have magnetic stripe only cards and these must not be refused at the point of sale. Find out more below in When a signature is needed.
Chip cards have a contact plate like this:
Before you start
Are you sure that the card belongs to the person presenting it? If you are suspicious, you could ask the cardholder for other identification such as a driving licence or a passport. Find out about Reducing Fraud.
A step-by-step guide (chip and PIN)
- Ask the cardholder to insert their card into the chip reader slot on your terminal or separate PIN entry device.
- Following the terminal prompts, key in the full amount of the transaction. Find out more about how to take a Purchase With CashBack transaction, if you offer this service.
- Your terminal will now usually ask the cardholder to enter their PIN. If it doesn’t, this could be because the cardholder has a card that does not support chip and PIN technology (such as a chip-and-signature or magnetic-stripe-and-signature card). Your terminal will advise which method is required – always follow the prompts on the terminal. Find out more about When a signature is needed.
- Ask the cardholder to check that the transaction amount is correct and ask them to enter their PIN.
- Most terminals will then authorise the transaction automatically. If the terminal prompts you to call our Authorisation Centre, dial 0845 7 600 500 immediately and follow the instructions. Find out more about Authorisation.
- Wait for the terminal to print out a terminal receipt.
- Only give the cardholder the goods they are buying when you have received authorisation and completed the card transaction. If authorisation is not given, do not go ahead with the transaction. Ask your customer for an alternative payment method. Find out more about Reducing Fraud.
- Complete the transaction on the terminal by asking the cardholder to take their card from the terminal and giving your customer the goods they have purchased along with their copy of the terminal receipt.
Keep your copy of all terminal receipts in a secure fireproof place for at least 18 months in case there is a query later. Do not alter them in any way. If there is a dispute, the cardholder’s copy will normally be taken as correct. If you are not able to produce a terminal receipt when asked to, there may be a chargeback.
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- When a signature is needed
- You should only use a signature to verify a transaction in exceptional cases. The main one is if the customer has a non-chip and PIN card. Your terminal will prompt you when you need to obtain a signature.
Never use a signature just because the customer cannot remember their PIN.
In addition, when processing a refund, you (rather than the cardholder) will be required to sign the receipt and the transaction will not require the input of the PIN.
Extra security checks
If you do carry out a transaction using a signature as verification, you should take extra security precautions. Here are some basic ones:
- Make sure the card is not damaged, cut or defaced in any way.
- Check the signature strip for signs of damage or tampering.
- Check any specific security features for that card. Find out more in the Card Recognition Guide.
- If you are unsure, ask for additional proof of identity or make a ‘Code 10’ call.
Find out more about Reducing Fraud.
A step-by-step guide (signature needed)
- Insert the card and follow the terminal prompts which will tell you when a signature is required.
- Following the terminal prompt, key in the full amount of the transaction.
- Most terminals will then authorise the transaction automatically. If the terminal prompts you to call the Authorisation Centre, dial 0845 7 600 500 immediately and follow the instructions. Find out more about Authorisation.
- Only give the cardholder the goods they are buying when you have received authorisation and completed the card transaction. If authorisation is not given do not go ahead with the transaction. Ask your customer for an alternative payment method. Find out more about Reducing Fraud.
- Wait for the terminal to print out a terminal receipt.
- Check that the card number, expiry date and card type on the terminal receipt are the same as on the card. If any details are different, hold onto the card and cancel the transaction immediately. Then call the Authorisation Centre on 0845 7 600 500 and say that "This is a 'Code 10' call". Find out more in Authorisation and Referrals.
- If all the details match, check the transaction and amount, then ask the customer to sign the terminal receipt.
- Check that the signature matches that on the card. If you are not sure, you may decide to ask for additional identification such as a driving licence or a passport. If you are still in doubt call the Authorisation Centre on 0845 7 600 500. Find out more about Authorisation.
- If you are happy with the signature, confirm the transaction on the terminal, give your customer the goods they have bought and their card, along with their copy of the terminal receipt.
Terminal receipts, paper vouchers and other transaction records are high-security items and access to them should be restricted. Keep your copies of all transaction details in a secure fireproof place for at least 18 months in case there is a query later. If you are not able to produce records when asked to, there may be a chargeback. Do not alter transaction records in any way. If there is a dispute, the cardholder’s copy will normally be taken as correct. After 18 months, make sure that you dispose of all transaction records securely, in line with your Contract.
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- Troubleshooting
- You must always follow the prompts on your terminal and never magnetic-swipe the card or PAN-key the card number into your terminal to avoid using the higher-level security features (such as chip and PIN).
If the cardholder enters their PIN incorrectly
The cardholder will have three chances to enter their PIN. If all these fail, the PIN will be locked. This means they will not be able to use the card until they have received a new PIN from their card issuer. In the meantime, ask them if they are able to pay with another card or cash.
If the cardholder has forgotten their PIN
They will not be able to use the card and they must contact their card issuer to obtain a new PIN. Ask them if they are able to pay with another card or cash.
If you receive a message that the PIN is locked
Please advise the cardholder to get in touch with their card issuer and ask for a new PIN, so that they can start using the card again in the future.
If neither the chip nor magnetic stripe reader works
- When the card chip or magnetic stripe is damaged, or when the card is not inserted correctly, the terminal cannot read it. If a terminal message says the card cannot be read, first insert the card again (or try again with the card the other way round).
- If this doesn’t work, the card is likely to be damaged. Ask your customer for an alternative payment method. They should also contact their card issuer to ask for a replacement card.
- If the card is a Visa Electron, you shouldn’t go ahead because you won’t be able to imprint a back-up voucher. Without this evidence, you would be liable for any transaction that is charged back later.
- With card types that do not have the words “electronic use only” printed on them, you will be able to key in the card details using the number keys on the terminal. The terminal will prompt you for the information needed – known as Primary Account Number or PAN. If the card does not have a PAN, you will not be able to go ahead with the transaction. Please ask your customer if they can pay with another card or cash instead.
- After you have entered the PAN and are waiting for authorisation, you must use the manual imprinter to obtain an imprint of the card on a paper back-up voucher. Your customer must sign both the manual imprinted voucher and the terminal voucher. In the event of a disputed transaction the imprint of the card demonstrates that the card was present when the transaction took place. The cardholder will also need to sign the fully-completed back-up voucher clearly marked as "no value, swipe failure". Do not bank this voucher, as the transaction is being processed via the terminal and this is being taken in the event of a customer query or dispute. Find out more in If Your Terminal Fails.
If your terminal breaks down completely
If your terminal has stopped working, you can still accept card payments using your back-up paper vouchers and imprinter. Make sure that you only do this if your Streamline Contract allows you to. Find out more in If Your Terminal Fails.
If someone leaves a card behind
- Keep it somewhere safe for at least 24 hours, in case the cardholder comes back for it.
- If someone comes to claim the card, ask them for signed proof of identity, such as a driving licence or other cards, and compare the signatures.
- Ask them to sign a blank receipt and compare the signatures. Then destroy the receipt.
- If you are then happy with the cardholder’s identity, give them back the card.
- If you are suspicious, ask them to come back with additional proof of identity. If you are still not satisfied when they come back, call the Authorisation Centre on 0845 7 600 500 and say "This is a 'Code 10' call". The operator will talk you through the process.
- If they do not return or if nobody comes to claim the card, please send it to us to be cancelled. First cut the card into two pieces. Looking at it from the front, cut off the bottom left-hand corner. Do not cut through the signature strip, magnetic stripe, hologram or chip. Then send the pieces with a short note giving your address and the date you found the card to:
Harrogate Card Centre
Card Rewards Section
PO Box 700
Central House
Otley Road
Harrogate
HG3 1XH
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American Express and Diners Club
Please use the separate instructions provided by these card companies.
Require additional information or interested in accepting card payments? Don't hesitate, call our sales team.
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