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Credit card Fraud?

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  • Credit card Fraud?

    I have a buyer who is disputing a charge -- Claims the charge wasnt authorized.

    I have an email from her telling me she returned the item, but has not provided me any tracking information and the item has not been received on my end (its been 2 months) -- so I am leary to believe that she actually returned the item.

    Merchant account said there was basically nothing I could do -- she will win the dispute so I am looking for other options. Seariously considering dropping Merchant account as there is no seller protection. Atleast with Paypal I am protected against stuff like this...

    If she continues with the dispute can I threaten legal action with a small claims suit for credit card fraud? Anyone ever had luck with small claims for something like this?

    Any help or suggestions would be appreciated!

  • #2
    If I were in your position I would just fill out the form you get from the merchant center to respond to the chargeback. Say that you sold her merchandise, give your tracking number, order info. Say that you have not received the return and therefore no refund is due.

    They will probably give you a temporary reprieve and go back to the customer to respond. If you are lucky they will either A) drop it or B) really return the item this time. If they keep fighting then you will be out the money.

    I do not recommend dropping a real merchant account in favor of paypal. Paypal has plenty of problems along these lines as well. All of these systems favor the customer in disputes.


    • #3
      I have already sent in the proof of delivery but buyer states they didnt authorize the charge and merchant says that an email is not sufficient proof of authorization. In other words, someone from their house could have purchased the item and they didnt authorize the charge. Even though I have the buyers ip address on the email that says she has returned the item to me -- thats why I was thinking I could file small claims.

      In the past when I have had an issue with a paypal buyer, paypal has been good about what documentation they will accept and seems to work on behalf of the seller a lot more than my Merchant Account.

      Would small claims be an option?


      • #4
        Fraud is just part of the business but some will hurt you

        I understand where your coming from. I recently had a customer to purchase an accounting program. They wrote a check, and I expected it to clear but it didnt. It was out for delivery that i found out the check came back as NSF. As it was out for delivery. I called and got the program to be returned back to my warehouse. I was out a few dollars vs. the check and the product. I have since then changed my check payment policy.

        I have a policy that the credit/debit card MUST match the card issuing bank and no exceptions. It can be auth by the bank, but it will be declined if not matched on my side. Most customers understand, and I call and verify the order(s) as well. Im sorry they did a chargeback, but dont cancel your merchant account. You did right by showing what you have as proof. Its just part of the business to have some that will try to fraud you. Just increase your security, offer the best customer service you have. If you dont feel comfortable with a sale. Cancel it. Rather loose some money, vs double the money. If i can help, or offer more advice, let me know.

        David Hamlen
        Choice Checks LLC


        • #5
          Atleast with Paypal I am protected against stuff like this...
          please rethink.


          • #6
            been down this road many times. No matter who you are with, Paypal or any processing service the customer will get there money back and you will be out the money and the product.


            • #7
              the merchant is guilty until able to fully convince the processing vendor otherwise.
              And much more so with "non-banking" institutions.


              • #8
                Merchants being shafted

                If you are a merchant processing online then almost every transaction is risky.

                If you accept a transaction and the CVD matches as well as the AVS is positive you are still at risk. Those do not protect you from a chargeback on any level.

                The customers have the advantage here and the credit card banks will not be liable so they push everything back on the merchant. It is entirely up to the merchant to prove the transaction was legit.

                I have been dealing with this issue for many years and the ONLY way you can be 100% protected is if you have VBV / MSC integrated into your payment system.

                If the customer is verified using this service they have 100% liability for any transactions made on there card. If you dispute a chargeback and have the VBV / MSC information you will win the dispute.

                However.... This brings up another issue. How easy is it to get VBV and MSC working ? That depends on your merchant account and if it works smooth with 3Dcart.

                Right now I am dealing with an issue were I have VBV and MSC but for some strange reason 3Dcart is not sending the auth code for this service to my merchant acount. And if the auth code is not sent correctly I can't dispute any chargebacks.

                3Dcart is not giving me an answer as to why this is happening and they have been dragging it on since Dec 11th. I am about to lose my freakin mind.

                Bascially if you don't have VBV and MSC every transaction you accept is potentially fraud.


                • #9
                  Merchants being shafted

                  Things need to change as the customer has almost no liability for what happens with there credit cards.

                  All the work is pushed back on the merchant when the banks do not prosecute for fraud.

                  If someone uses someone elses card they should be charged with fraud.


                  • #10
                    We to used to get beat with things like not Authorized charges but we signed up with one of the only companies that offers charge-back protection against credit cards if the order passes their inspection. Very reasonable prices to - we use it in all three of our online stores and one the one charge back we got they fought it and one, we didn't have to do anything except give them the order and tracking information.I think there app is available now in the 3D cart app store - well worth the money only runs us about $90 a month average per store