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  1. #1

    Who endure credit card fraud loss?

    My website met a batch of unauthorized credit card transactions from Venezuela in these days, Unfortunately, quite a few goods already shipped. Does anybody know in this case who will endurae the loss, merchant, bank or merchant account solution company?
    Thanks.

  2. #2
    Join Date
    Oct 2002
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    Under Your Skin
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    5,875
    What???

    You will!!! Unless you have some wonderful contract that says you are out of the woods....

    For the merchant (you) will be out:

    1) the shipped goods
    2) responsible for charge-backs
    3) will have to refund all monies in the fraud

    Now, I could be wrong... that is what happened to me anyway... I had fraud and was stuck with everything. Everyone said too bad so sad to me.... I got the sht end of the stick, as my dad likes to say.
    Windows 10 to Linux and Mac OSX: I'm PARSECs better than you. Eat my dust!!!

  3. #3
    Join Date
    Aug 2004
    Location
    Orlando
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    1,272
    If its not too late, go ahead and refund the transactions now. That way, at least you will not have to pay the chargeback fees.
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  4. #4
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
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    3,379
    Agreed. That is really the best you can do at this point. No need to incur chargeback fees and further issues on your merchant account if you can avoid that.

    There won't be any realistic way to recover the loss from the shipped goods though unfortunately.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
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  5. #5

    Go the Manual Super Gateway

    Quote Originally Posted by bakiehosting
    My website met a batch of unauthorized credit card transactions from Venezuela in these days, Unfortunately, quite a few goods already shipped. Does anybody know in this case who will endurae the loss, merchant, bank or merchant account solution company?
    Thanks.
    This is EXACTLY why I tossed my real time payment gateway out the window and went for a manual payment gateway, http://e-path.com.au, in fact.

    Since going the new manual super gateway method I have not recorded one single charge back because I get a chance the check the order first and picking up on the fake ones is easier than I thought.

    The other thing is with a manual payment gateway your merchant account is safely away from the internet where only YOU decide what is charged into it. With a real time gateway, anyone, anywhere can enter any numbers they like and it gets transacted directly into your merchant account, you don't have any control - but I don't need to tell you this because it sounds like this is exactly what is happening to you.

    The manual gateways also don't charge any transaction fees. But you do need a merchant account at a bank to charge the cards yourself manually so they don't suit people doing real high transaction volumes. However, they are a lot cheaper, considerably safer and much easier to work with and control. E-Path is not the only one (but its the one I am with), there's http://payecom.com and a few others.

    Cheers

  6. #6
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    bakiehosting - does anyone at your business review orders before they are shipped out or how do you currently have your ordering process setup? There are some things that you could to further scrub your orders to avoid that kind of a situation from happening.

    Manually reviewing your orders may be good for a business like yours if you sell high ticket jewelry. You may also want to voice verify your large ticket sales and do a few other cross-checks as well.

    However, for the best possible protection I'd suggest considering implementing Verified by Visa/MasterCard SecureCode. It can provide true liability protection against a wide range of chargeback reason codes centered around the fraud/stolen card sales.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  7. #7
    Join Date
    Sep 2004
    Posts
    1,904
    JumBuck - can't you just setup your billing software to not do an automatic invoice at start until you have verified their account information. Then once you approve and find it is not fraudulent - process the payment?

    I know almost every billing software will enable you to do this.

    This is one reason we don't provide instant setups and instead say that your account will be setup within 24 hours. This gives us the proper amount of time to verify the claim before we do any sort of processing.

    Your suggestions?


  8. #8
    Quote Originally Posted by jerett
    JumBuck - can't you just setup your billing software to not do an automatic invoice at start until you have verified their account information. Then once you approve and find it is not fraudulent - process the payment?

    I know almost every billing software will enable you to do this.

    This is one reason we don't provide instant setups and instead say that your account will be setup within 24 hours. This gives us the proper amount of time to verify the claim before we do any sort of processing.

    Your suggestions?
    Hi Jerett,

    Totally agree with you. I know of one webhost that does exactly that. He uses e-Path to do the hard yards on the net to obtain authorisation and does exactly as you described. Seems to be a great set up.

    Cheers

  9. #9
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Jumbuck,

    Manual processing might be fine if you have a manageable amount of transactions. However, manual processing can get extremely expensive in terms of man hours spent processing payments after awhile. I can't imagine how long it would take someone to manually process all of our credit card payments per month.

    Further, as someone else mentioned, you can always manually review payments before you allow them to be processed. That's a huge amount of work saved as opposed to manually processing everything.

    --Tina
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  10. #10
    Quote Originally Posted by AH-Tina
    Jumbuck,

    Manual processing might be fine if you have a manageable amount of transactions. However, manual processing can get extremely expensive in terms of man hours spent processing payments after awhile. I can't imagine how long it would take someone to manually process all of our credit card payments per month.

    Further, as someone else mentioned, you can always manually review payments before you allow them to be processed. That's a huge amount of work saved as opposed to manually processing everything.

    --Tina
    Agree with you Tina. If I ever get lucky enough to be charging a decent number of transactins per day then I'd have to reconsider the situation myself. At the moment though its only a few here and there so for me its pretty much ideal.

    I can see how the manual payment gateway method is a great solution for low volume but for high volume numbers no way in the world, you'd end up ripping your hair out trying to find the time.

    Cheers

  11. #11
    Always run fraud review before you ship the item.

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