What is a "Code 10" in the context of transaction authorization?

A "Code 10" is used within the realm of transaction authorization as a discreet call to investigate potential fraud without alerting the cardholder. This term refers to a procedural code that allows an employee or merchant to communicate a concern about fraud directly to the authorization center, while keeping the cardholder unaware of the suspicion. This can help in preventing further fraudulent activity without causing alarm that might lead to the cardholder reacting in a way that could jeopardize the investigation. The essence of this system is to provide a safety net for merchants and card issuers to address potential fraud risks efficiently and effectively, while maintaining a seamless experience for the customer involved.

This code is particularly valuable in retail and service situations where immediate action may be necessary to prevent a fraud loss without alerting the fraudulent actor or causing disruption to legitimate customers. Understanding this practice is crucial in the field of transaction authorization and fraud detection.