Reviewed by Sep 30, 2020| Updated on
A list of credit cards that are lost, stolen, or compromised in some way is known as a warning bulletin. Such a list is also called a hot list, cancellation bulletin, or restricted card list. The warning bulletin keeps updated information about restricted credit cards.
Credit card companies issue this list to the merchants to avoid fraud transactions. The list is updated online in real-time and enables vendors to obtain authorisation for credit cards to verify if that card has been already flagged for improper use. The list is also provided in paper format so that the merchants can verify the card against the list before initiating any transaction.
Visa and MasterCard have set certain protocols and procedures to be followed by merchants when recovering and returning counterfeit cards. If a fraudulent card is found after comparing against the warning bulletin, the processor cuts the card in half through the magnetic tape so the unauthorised person cannot use the card anymore.
The usage of chip cards has reduced credit card frauds of late. The major advantage of using EMV chip cards is that it reduces data breach and uses encryption methods to secure user data.