Remember seeing in television and movies, credit cards would be cut whenever it was discovered declined when a customer tried to use it at the cashier? If a credit card is declined or a response code is given when running one at your business, you may be wondering, can a business cut your credit card? What do you do once the card is cut?
Credit Cards Decades Ago
It used to be that a business would cut your credit card with some scissors when your card was declined, but this is not really the case anymore. Back in the day, the technology was not like it is now and where all transactions need to be approved by the card issuer. Before, a certain amount was allowed to be authorized without the issuer’s approval, thus leading to credit card fraud growing during this time.
There was an old fashioned wanted list for fraudulently used credit cards and if the card you tried to use was on it, they could go ahead and cut the card up right in front of you to prevent it from being used again.
What Happens Today
Ultimately, if there is a fraudulent transaction, it falls back on the merchant who should be making the best efforts to prevent this in the first place by identifying a canceled or stolen card. There are different signs to when a business may find reason to cut up your card.
Mismatched Account Numbers
There is a mismatch between the account number printed on the card and number stored on the magnetic stripe when swiped. When swiped, the merchant may be alerted of this issue from the terminal. Also, the credit card number on the front should also match the four digits of the account number printed on the back by the signature.
Some credit cards have a photo of the account holder, so obviously, if the merchant sees a mismatch there, they will be alerted of the fraudulent use.
There is a wanted list now through the Electronic Warning Bulletin or International Warning Notice. Technology today has advanced this so that it’s not a booklet anymore, but electronic instead.
Card Confiscation and Destruction
If the merchant sees that the credit card issuer responds by requiring them to “pick up” the card or call for authorization, the issuer wants the merchant to recover the card or contact your voice authorization center.
What Can You Do if A Business Has Cut Up your Credit Card?
If your credit card has been cut up by a cashier, customer service representative, or other person at a retail or shopping establishment, do not fear. Usually, the problem can be fixed by contacting your credit card company and asking for a new card. If you do not have a copy of the card to be able to locate the 800- or 888- number on the back, simply wait for a new statement to come to your address and request your new card. If you do not expect to receive a statement because you have no balance, simply go to the credit card’s online website and call the number on the contact information tab listed.
Getting Legal Help
AXIS Legal Counsel represents consumers in a variety of matters spanning multiple legal fields. AXIS represents clients in fraud claims, consumer deception, false advertising, deceptive trade practices, class actions, and other related matters. For information on retaining AXIS Legal Counsel for any contractual dispute, contact firstname.lastname@example.org or call (213) 403-0130 for a confidential consultation, or visit our or Individual Rights Portal for more information.
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