GNYADA February 2017 Newsletter

18 AlliedMember Memo

Don’t Let Credit Card Fraud Damage Your Business

team can offer coaching tips on what questions to ask and how to prevent a fraudulent transaction from occurring. The Red Flags Rule requires dealers to institute and enforce an Identity Theft Prevention Program (ITPP). Failure to do so can incur maximum civil penalties of $3,500, in addition to whatever amounts the dealership may be deemed legally responsible for. This article was contributed to by Xenex Payment Systems, a GNYADA Allied Member. For information on how Xenex can help secure your cred- it card transactions, contact Michael Sclafani, Xenex's National Sales Director, at 888.918.4409 or the Association, at 718.746.5900.

Here is a nightmare scenario for a dealership: The Parts Department processes a large credit card transac- tion over the phone; the purchaser either picks up the purchase or has it delivered; a month later, the dealer- ship gets charged back for the trans- action. What happened? The purchas- er was using a stolen credit card, and the rightful cardholder reported the fraudulent transaction after reviewing their statement. Incidents such as these occur regular- ly, and can wreak havoc on business operations. Here are a few ways to reduce your risk and provide higher levels of security for your customers: When taking credit card payments over the phone, collect as much information about the card as pos- sible, beyond the expiration date n

and security code. Ask for the cardholder’s full name, address and phone number associated with the card, as well as a driver’s license number. The higher the likelihood of being caught in a lie, the more likely a criminal is to abandon the scam. Watch for these red-flags: first- time customers (who are not in the dealership’s customer database) attempting to make large purchases over the phone, or making large transactions at the parts counter. If a purchase doesn’t “smell right”, enlist third-party help. All GNYA- DA members can contact Xenex Payment Systems, a GNYADA Allied Member, if an employee isn’t getting the proper information on a cardholder. Xenex’s support

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Renew Your GNYADA Membership Today! 19

As a member of the Greater New York Automobile Dealers Association, you have access to a wealth of services and programs aimed at keeping your business operations efficient and profitable. To make sure your benefits continue uninterrupted, we urge you to renew now! For dealers in our region, it's more

important than ever to have an Association looking out for their best interests. We’re seeing ongoing challenges to the franchise system, increasing pressures from regulators, and new legislation threatening to negatively impact dealership business. The Association is your tool to push back against these trends. With your committed support, we

will continue working to promote and represent the franchised new car industry in metro New York, so you can focus your attention where it matters most: running your business with minimal outside interference. If you have any questions or comments concerning your renewal, please contact Jennifer Berman at 718.746.5900 / jennifer@gnyada.com.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • February 2017 11