Today most POS systems communicate using the Internet. Authorizing and settling credit card transactions by Internet is fast and efficient, but what do you do when this service is interrupted? There are a number of reasons that your Internet connectivity can fail. It might be that your Internet service provider is having a problem, or that a change has been made to your system that is blocking communication, or that the software or hardware in your system is not functioning correctly. Whatever the problem, it is good to have a backup plan for credit card authorization and settlement in case of Internet failure. Below are a few suggestions that can help you cope until the problem is resolved.
1. TELEPHONE LINE BACKUP: The best solution, if your system allows it, is to establish a telephone line backup that will automatically take over credit processing when your system detects that Internet is not available. This solution requires a dedicated analog phone line connected to a telephone modem. If you do not already have this option for your POS system, your dealer can advise you on setting it up.
2. VOICE AUTHORIZATION: Should telephone backup not be available, the next best option is voice authorization by telephone. By calling the number on the back of the customer’s credit card, or your credit card processor’s voice authorization line, the intended charge can be authorized. A six-digit authorization code will be given, which can then be used when manually entering the transaction. You may also call the specific card network.
- Visa/MasterCard: 1-800-990-2265
- Amex: 1-800-528-2121
- Discover: 1-800-347-1111
3.CREDIT CARD IMPRINTER ”KNUCKLE BUSTER”: Many times, we are told by merchants that voice authorization is too slow that there is no time to call the issuing bank to authorize each credit card transaction. In these cases, the best option is to use a credit card imprinter, widely known as a “knuckle buster,” to capture the card info and then enter the transaction manually as you would with a voice authorization. Keep in mind though, that since the transaction was never authorized, your business is taking a risk that the card is not good, and that the customer’s account does not have enough funds to cover the transaction. In cases where this option is used, some POS systems will perform a “pre-settlement” where an attempt will be made to get valid authorizations for transactions of this type before final settlement. It is important when using this method, to store the captured credit card information in a securely locked location. Credit card imprinters can be obtained by contacting your merchant services representative or your credit card processor. Please be aware that PCI requirements apply to all manual imprints. Most importantly, be aware that:
- Manual receipts must be kept for a minimum of 90 and maximum of 120 days.
- Manual receipts must be stored in a locked, secure location.
Hopefully, the times that you experience loss of Internet service will be minimal, and we hope that the tips presented here will prepare you to handle those occasions with less stress and frustration. .
