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What is the proper way to process a swiped transaction?

In order to properly process a swiped transaction you must swipe the card through your terminal, obtain a valid authorization and obtain a signature on the sales slip that prints.  You must validate that the signature on the back of the card matches the signature from your customer.  If there is not a signature on the back of the credit card, you should ask for another form of identification that includes a signature.  If you are unable to swipe the card due to a bad magnetic stripe on the card, you should obtain an imprint of the card to prove it was present at the time of the transaction.