Abstract: Merchants that have access to financial transaction card readers sometimes experience failed card reads when attempting a transaction. The merchant may then perform the transaction by manually entering account information from the financial transaction card, which can cause the merchant to be charged a higher fee than would have been charged if the transaction had been performed with the card reader. Technology is disclosed for providing discounted transaction rates for a card not present transaction following a failed card read. This is accomplished by detecting a failed card read of a financial transaction card through a card reader; detecting a card not present transaction including receiving user input of textual account access data; matching the failed card read with the card not present transaction; and crediting a difference between a fee charged for the card not present transaction and a fee which would have been charged for the attempted transaction.

Abstract: Techniques and arrangements for managing risk of fraudulent transactions made by a point-of-sale (POS) device operating in an online and an offline mode. In some instances, a payment service may maintain a merchant profile with a list of merchant specific criteria. The payment service may encrypt and send the merchant specific criteria to the POS device associated with the merchant. The encrypted data may include a list of payment instruments used in previous successful transactions, customer transaction histories, and other customer information. The POS device may determine, upon receiving a payment instrument identifier in a transaction, whether the payment instrument has been used in a previous successful transaction. If the POS device determines the payment instrument has been used, it may process the transaction. If not, the POS device may warn the merchant that the transaction is a high-risk transaction.