Preventing Fraud: Declining a Suspicious Transaction

Why should a cashier decline a transaction with a customer who wants to purchase $3,850 worth of prepaid cards?

Which reasons would justify declining this transaction according to store policy?

Answer:

You must decline the transaction for the following reasons:

- A customer may not purchase more than $2,000 in prepaid cards within a 24-hour period.

- Customer ID must be a valid (not expired) government issued photo ID

- Customers may not purchase more than $250 at the assisted checkout (ACO).

Explanation: A cashier should decline the transaction for multiple reasons. Firstly, according to store policy, a customer cannot purchase more than $2,000 in prepaid cards within a 24-hour period. In this case, the customer is attempting to purchase $3,850 worth of prepaid cards, which exceeds the limit. Secondly, the customer provided an expired ID, which is not valid for the transaction. IDs must be current and government-issued. Lastly, the customer is trying to buy more than the allowed number of gift cards in one transaction. Due to these violations of store policy, the transaction should be declined.

Further Explanation:

Managing prepaid card limits is important to prevent fraud and stay compliant with regulations. The store has set specific limits on the purchase of prepaid cards to protect both the customer and the business. By following these policies, cashiers can help prevent potential fraudulent activities and maintain the integrity of the store's transactions.