Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Tired of the chargebacks.

[NationHosts]

I've noticed a lot of orders coming in from users who signup then just out of the blue do a chargeback after about 4-5 months using our service, most of these are coming from kids or teenagers and their parents are not aware of the charges, I have no way of knowing their age but am thinking of putting something saying you must be 18 in order to signup for our services, even then I don't think that will discourage too many kids out there. Any ideas what I should do? I'm not to happy thinking my paypal account could be closed at any time from chargebacks.

[kris1351]

One good way of preventing this is confirming each order by phone and requesting to talk to the owner of the card.

[NationHosts]

That would be a awful lot of orders...

[sysc]

Well, voice verify is the best way to prevent it from happening.

[Tina J]

Voice verify the ones that look a bit odd. Generally, anything with a non-professional domain name.

[kris1351]

It's extra work, but it is well worth the effort. Chargebacks are expensive and they can hurt your merchant account ratings. 30 seconds for each order extra is well worth the result.

[NationHosts]

the problem is not only would I have to verify each order I'd have to login to my billing program and mark on admin notes who verified and who didn't that kinda thing, it could actually become a hassle and in the end ruin my organization.

[Aussie Bob]

Originally posted by NationHosts
the problem is not only would I have to verify each order I'd have to login to my billing program and mark on admin notes who verified and who didn't that kinda thing, it could actually become a hassle and in the end ruin my organization.

Just depends on how much pain your chargebacks currently cause you, as to the lengths you're prepared to go to, to prevent them.

[Tina J]

You asked for advice, you've rec'd the most common sense and best advice there is. If its a hassle to you, then maybe you might not want to accept credit cards.

--Tina

[mikeym]

Yeah, another way a lot of companies do it is they require that when you pay by credit card is that you must fax/scan a copy of the credit card, a copy of the persons driver license/ID and their signature. It's a bit of a pain for people, I'd go for the voice verification but you can always give your clients the option of one or the other.

[AFMichael]

If you can't take the time to verify the order and make the needed notes then why are you a web host? Taking steps to prevent fraud/chargebacks/etc. should be a part of your normal routine.

[NationHosts]

Does WHMAutopilot have an option to mark verified accounts? I want to setup something like this "if user is not marked as verified account will be deleted in 24 hours" automatically that is?

[Bashar]

what about if the voice verification user is lying ?

say you call the number and its wrong number and the frauder say yes i'm mr. xxxx and i ordered yyyy.


then what?

[Tina J]

If the area code is 312, but the order is from Wisconsin, you'll know its a no match.

[mediopia]

Originally posted by Bashar
what about if the voice verification user is lying ?

say you call the number and its wrong number and the frauder say yes i'm mr. xxxx and i ordered yyyy.


then what?

This has happened with us.

This guy had a 1-800 number, we called verfied and every thing. Later on when we got a charge back it turned out this number was from kal8 and was connected with an overseas land line.