Discrimination??

[jerin]

My company has recently been hit by a wave of credit card fraud committed largely, but not solely by people with eastern European names.

We have now been told that we cannot accept any cards that have an eastern European name. (it doesn't clarify whether this is bank name or persons name tho I think it is surname.)
Firstly is it even legal to discriminate in this way? And how do I gauge whether someone is British with an eastern European name or non British?

Secondly if I take a payment that turns out to be fraudulent can my company demand I repay it or deduct it from my wages?

You are not being discriminatory. You are acting on the instructions of your bank. Nothing you can do.

And how do I gauge whether someone is British with an eastern European name or non British?

The banks instructions are clear - if the name is Eastern European, you can't process the paperwork. Actual nationality is irrelevant.

if I take a payment that turns out to be fraudulent can my company demand I repay it or deduct it from my wages

I'm not an employment lawyer, but would imagine that if you follow the instructions they give you, you'll be OK. If you refuse to be "discriminatory" as you see it, and take payments from people with E European names, and your employer loses money as a result, you may be guilty of gross misconduct and sacked.

I cannot see where in the OP this instruction has come from the bank? Surely it's more likely that it has been taken internally - banks have much more sophisticated systems than decreeing no Eastern Europeans.

Yes, I think this is discriminatory as defined by the Equality Act 2010 re provision of goods and services. The reason for declining is race which is not permitted.

Your employer should be working with their provider of merchant services to minimise card fraud. It may be that they have to reduce the amount that requires authorisation from £50 t0 £25 for example. Another thing they might do if the cards are being cloned is invest in some UV lights to do additional security checks.

There are very strict rules about deductions of wages, especially for shop workers. I would ask your employer to clarify this position in writing. Your employer is likely to back down then. I would also post over in Employment Issues for employment law advice - particularly because I think some of Collaborate's reply is incorrect so I suspect you need some more specialist employment help.

3.2.6 Race (section 10)

The position on 'race' remains unchanged under the Act. It is unlawful to discriminate on grounds of colour, nationality or ethnic/national origins.

Law Society Practice note on Equality Act 2010