Warning Bulletin

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Warning Bulletin

What is the Warning Bulletin?

The warning bulletin (also called the cancellation bulletin, hot card list, or restricted card list) is a list of credit cards that have been canceled, reported past due, or stolen. Originally distributed weekly on paper by the major card networks, it is now maintained online and updated in real time. Card networks use the bulletin to notify merchants and member banks about card numbers that should be declined or handled with special protocols to reduce fraud.

How it works

  • Major card networks provide the bulletin to processors, issuers, and merchants so they can identify cards that are lost, stolen, counterfeit, or otherwise compromised.
  • Merchants are instructed to obtain authorization before accepting any card that appears on the list and to follow specific procedures when a flagged card is presented or recovered.
  • Real-time updates allow faster response to compromised card numbers and help prevent fraudulent transactions.

Procedures for recovered or counterfeit cards

When a card is suspected to be counterfeit or used by someone other than the authorized cardholder, card networks generally require merchants and processors to:
– Follow network-specific recovery and return protocols.
– If appropriate and safe, recover the card from the customer.
– Disable the card (for example, by cutting it through the magnetic stripe) if not already done.
– Forward the recovered card and any required documentation to the issuer.
– Document the incident and cooperate with the issuer and processor as requested.

These steps are intended to protect consumers and prevent further fraudulent use while preserving evidence for investigation.

Preventing credit card fraud: EMV chips vs. magnetic stripes

Card technology and bulletin systems work together to reduce fraud:

  • Magnetic stripe cards
  • Store permanent card data on the stripe.

  • Are easily cloned by skimming devices, making them more vulnerable to fraud.

  • EMV chip cards

  • Contain an embedded microchip that generates a unique, one-time code for each transaction.
  • Make it much harder to create useful cloned data because the one-time codes cannot be reused.
  • Are now the global standard for ATMs and point-of-sale terminals, and have significantly reduced certain kinds of in-person card fraud.

Key takeaways

  • The warning bulletin is a real-time list of canceled, stolen, or otherwise compromised card numbers used to prevent fraudulent transactions.
  • Merchants and processors must follow network protocols for authorizing, recovering, and returning flagged cards.
  • EMV chip technology has substantially improved security over magnetic stripes by making transaction data single-use and harder to duplicate.
  • Prompt use of the bulletin combined with secure card technology and proper merchant procedures helps limit losses from credit card fraud.