Accepting Credit Card and being protected from charge backs

[waverunner]

I am located in Australia and seeking assistance with accepting credit cards

 

Do these credit card gateways arround protect you from stolen cards being used and getting chargebacks?

 

Can anyone suggest a good way of accepting credit cards or suggest a gateway supplier that somehow checks the credit cards are protects from chargebacks

 

[clustersolutions]

@@waverunner, I've been fighting chargeback for 10 years and stolen cards and chargebacks aren't connected. You can find stolen cards and charge through them, and never shipping anything, and you'd be surprised that not everyone look at their line items on the CC statement.

 

Having said that, no, no payment gateway could ever protect you from chargebacks. There're fault prevention packages that they sell but I had never used them.  You just need to be vigilance with orders of high value. A phone call to the bill to would tell you a lot. Also, you need to have policy/procedure in place that would stack the odds in favor of you should a chargeback ever occur. You won't win them all...the payment industry have not the incentive to prevent thief as they have nothing to lose. The merchants always absorb the bulk of that cost...

 

Lastly, just remember, you are not a real business until you have couple percentage of thief happening...

[MrPhil]

It depends upon the nature of the goods you sell, as to whether they're something enticing to crooks (jewelry, electronics, etc.). Watch for new customers making huge purchases, and perhaps you can query (through the credit card company) whether they want to check with the card owner before you ship the goods. Stolen (physically or online) credit cards are widely available, and may or may not be checked against lists of stolen cards before your payment service accepts them. And there's always the first time a stolen card is used, before it gets reported as stolen. Your payment service or bank may agree to eat part of the loss, but it's likely that a good part of it will be picked up by you -- an unfortunate business expense.

 

Regarding chargebacks, there are always unscrupulous customers who will claim they never received the goods (get some sort of proof of delivery for expensive shipments), or otherwise are entitled to a refund. Some payment systems, such as PayPal, are notorious for always taking the customer's side in a dispute. Again, an unfortunate expense that you'll have to eat. If it gets bad with your payment system, try another one.

[waverunner]

We sell remote controll toys including drones which are the item of choice for the stolen cards....

[clustersolutions]

@@waverunner. Signature confirmation. Insurance. Better yet, get a carrier insurance that pay out and skip the signature confirmation. Good luck in ever getting Visa International to absorb any part of the loss. Look into what is a code 10. There's a fee for that. Again, I do code 10 along with a follow up with the customer many times. I caught a lot of thieves this way and I ask them these questions:

 

1) type of cc.

2) name of bank.

3) last four CC #.

4) expiration date.

5) ccv #

 

I once had someone overseas at the end of our conversation after she had tried many CC number and she said: "I guess you are not shipping the order?" My reply: "nope!" When it is your business you will catch up real fast on the tell tell sign of a potential problem order. Figuring things out that's what business is about...

[burt]

There is no way around it to beat customers who will find ways to rip you off.

 

I could name at least 20 members of this forum who have used my services or bought my products who then turn around and say "never received" and performed a chargeback.   You would have thought that they would not be so bold as to rip off someone who brings them the software they use, but it seems that a few dollars is more important than honour, they then continue to post as if nothing happened...

[clustersolutions]

Burt's right! You can only minimize risk and not prevent it. Last Xmas I purchased a bunch of electronics online from Amazon, and the way those businesses had carried out the fulfillment I could had gotten them all for free had I wanted to because I knew how. I didn't because karma's a bitch...

 

As a business you have to know how to make it less easy for thieves to steal from you. It is a shame that the payment industry/Amazon has no interest in protecting the merchants as they got to have the data on who does a lot of chargeback and etc...but nope...

 

Set up your online policy and test it and know its limit...I once went as far as taking a case to arbitration just to see and I lost...it costed me freakin $700USD for a $200 order...won't do that again...

[BrockleyJohn]

At least here in the Uk there are gateways that will give you the same fraud protection as the pin does in person: with 3d secure (Verfied by Visa, Mastercard Securecode etc) the presumption is (like with the pin) that it really was the customer who bought and you should be covered in the case of a claim of fraud.

 

None of them will protect you from a customer who claims not to have received the goods. You need to use a carrier who you can rely on to get a signature on delivery and keep a copy of it that you can get hold of. You need to have insurance who will pay up in the event of a non-delivery claim.

 

... well actually, you need to look at the cost of all of that and guess how it compares to how much you might lose, and make a judgement if it's worth it. Either way you have to build the cost into your pricing and still be competitive.