Discussion
We have had a customer contact us to place an order over the phone. Everything went through fine, card registered to the delivery address, goods delivered and signed for. Today we have received a chargeback from Worldpay saying the customer never participated in the transaction.
Unfortunately the customers neighbour has a business registered to his home address so I called him on the off chance and he confirmed the guy lives there. I know it is unlikely but is there anything that can be done?
Unfortunately the customers neighbour has a business registered to his home address so I called him on the off chance and he confirmed the guy lives there. I know it is unlikely but is there anything that can be done?
Flat-6 said:
hmm.... What's the bank's stance? they are the ones who blindly refunded.
What area is said "customer" in? maybe one of the PH Fellowship can nip round... (at 3AM in a strait-through Chimaera)
It's Bolton, I am speaking to Worldpay in the morning as I have confirmed the customer and his wife still live at the address and he has signed for the goods. Surely they have got to overturn this, otherwise I'm ordering a Sea Dweller tomorrow and pretending I don't know anything about it.What area is said "customer" in? maybe one of the PH Fellowship can nip round... (at 3AM in a strait-through Chimaera)
Ive had people try this stunt with my ebay business. You get the ones who first claim they didnt receive the item even when they signed for it, then that someone must have forged their signature, then they change their story to they never ordered the item followed by demamds for a refund via paypal and escalate that to charge backs via credit card. sadly there are some real scum who i suspect make a living out of this!
It's an unfortunate situation, hope that its not too much money involved.
It's an unfortunate situation, hope that its not too much money involved.
There have been instances of people ordering stuff from a stolen card to the actual address and waiting outside to intercept the postman.
What was it you sent them?
I had a customer buy over the phone via card then get someone to pick it up.
That un-surprisingly ended up with a chargeback.
Lost £800. Should have seen it coming.
What was it you sent them?
I had a customer buy over the phone via card then get someone to pick it up.
That un-surprisingly ended up with a chargeback.
Lost £800. Should have seen it coming.
Edited by Flat-6 on Wednesday 21st March 17:46
Flat-6 said:
There have been instances of people ordering stuff from a stolen card to the actual address and waiting outside to intercept the postman.
What was it you sent them?
I had a customer buy over the phone via card then get someone to pick it up.
That un-surprisingly ended up with a chargeback.
Lost £800. Should have seen it coming.
Same thing happened to a friend of mine for about £3ks worth of tyres to a trade customerWhat was it you sent them?
I had a customer buy over the phone via card then get someone to pick it up.
That un-surprisingly ended up with a chargeback.
Lost £800. Should have seen it coming.
Edited by Flat-6 on Wednesday 21st March 17:46
If you have proof of order, posting and receipt there is little more the accquirer (WorldPay) can ask for in this case. They will weigh up the evidence, however it is likely that whoever initiated the chargeback will have already received a refund. The acquirer, who is liable under the scheme rules i.e. Visa and MasterCard, will be looking to recover their costs i.e. the cost of the goods ordered on the card as they are currently out of pocket.
Unfortunately, this is a cardholder not present transaction, where you have probably taken the 'three digit' ccv along with the rest of the details - which is the type of authorisation you are expected to do as a diligent merchant, but it doesn't take much for an unscrupulous cardholder to claim it wasn't them on the phone.
It all boils down to the value of the goods, if this is a few quid well it may be worth fighting but ultimately accepting you might lose out. Any additional evidence such as telephone logs and delivery receipt or delivery person tracker/van cctv will be useful to support you.
Be advised, merchant acquirers actively monitor their merchants (I.e. you) for chargeback ratios. If you only do a few transactions per year you may be disadvantaged by one high value chargeback transaction, if you look like you won't settle the chargeback the acquirer is able to (and may well) 'turn off the taps' i.e. prevent settlement of your funds to you until they have recovered their money - this will be in your contract, additionally they may then look for forms of cash security to prevent the same situation occurring again.
I would ask for clear details on the chargeback, including the code which denotes the underlying reason, and then provide a reasoned response including evidence. Their team will be quite willing to discuss but conversely they have a lot of merchants and depending on your business type (SIC code) and chargeback/trading/turnover profile may 'derisk'
Good luck - you may wish to implement a form of two factor authentication such as insisting on an email order followed up by telephone verification so you can cover all bases. This may not work depending on your type of business.
Unfortunately, this is a cardholder not present transaction, where you have probably taken the 'three digit' ccv along with the rest of the details - which is the type of authorisation you are expected to do as a diligent merchant, but it doesn't take much for an unscrupulous cardholder to claim it wasn't them on the phone.
It all boils down to the value of the goods, if this is a few quid well it may be worth fighting but ultimately accepting you might lose out. Any additional evidence such as telephone logs and delivery receipt or delivery person tracker/van cctv will be useful to support you.
Be advised, merchant acquirers actively monitor their merchants (I.e. you) for chargeback ratios. If you only do a few transactions per year you may be disadvantaged by one high value chargeback transaction, if you look like you won't settle the chargeback the acquirer is able to (and may well) 'turn off the taps' i.e. prevent settlement of your funds to you until they have recovered their money - this will be in your contract, additionally they may then look for forms of cash security to prevent the same situation occurring again.
I would ask for clear details on the chargeback, including the code which denotes the underlying reason, and then provide a reasoned response including evidence. Their team will be quite willing to discuss but conversely they have a lot of merchants and depending on your business type (SIC code) and chargeback/trading/turnover profile may 'derisk'
Good luck - you may wish to implement a form of two factor authentication such as insisting on an email order followed up by telephone verification so you can cover all bases. This may not work depending on your type of business.
DSLiverpool said:
Chaps - if you get a payment over the phone and its a first timer / over house limit / anything out of the ordinary then take the payment and REFUND 1 to 10p then ask the buyer to confirm how much has been refunded - its not foolproof but it goes a
long way to stop you getting done.
I second this, DSliverpool gave me this same advice a while back when we were getting stung repeatedly with fraudulent orders.long way to stop you getting done.
We’ve ruled out numerous orders now by using this refund technique, so far only two people have come back with a figure.
DSLiverpool said:
Chaps - if you get a payment over the phone and its a first timer / over house limit / anything out of the ordinary then take the payment and REFUND 1 to 10p then ask the buyer to confirm how much has been refunded - its not foolproof but it goes a long way to stop you getting done.
But it takes Nationwide about 4-5 days to update my credit card transactions.....User name said:
Ean218 said:
Just log in to online banking and have a look at recent transactions, they are always days behind.
Mine's not...(business or personal)
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