AltTextGDpay Articles & News

The electronic payments industry has been going through many changes. Keep up on the latest rules, technology and security as it more important that ever to keep your business running smooth. Also learn the best practices to avoid fraud and non-compliance penalties. Also keep up on interchange rates and what information to pass to qualify for lowest rates.

Merchant Account Scam Alert! Avoid Force or Offline Transactions.

What is the Force or Offline Transaction scam?

A scammer with a stolen or fake card attempts a transaction. The merchant receives a decline, but the scammer pretends to contact their issuing bank and tells the merchant they received an authentication code. The scammer instructs the merchant, per their bank, to use the code and force or create an “offline” transaction. The merchant enters the code, completing the false transaction. The scammer walks away with stolen goods/services, and the merchant doesn’t discover the scam until the batch processes, or it is identified when a chargeback or dispute is received.

Is this real?

Yes. Recently a merchant processed two transactions on a card, received a decline and then the scammer provided a phony authentication code to the merchant for an offline transaction. The merchant manually keyed in the code and the scammer walked away with the goods.

At the end of the day, when the merchant attempted to settle their batches they received an error message due to the invalid authorization number. Unfortunately, the authorization that was used with the force or offline transaction wasn’t valid, and it was too late. The scammer was gone and had successfully defrauded the business, taking the goods and the merchant received a chargeback.


Office- 888-600-2602
[email protected]