Grrrrrrrr chargebacks....

B

BlackStorm

New member
i got a chargeback over a week ago, the money was for a hosting account which was setup and the details were
sent out to the email address given on signup.
The same email address is what is used as their primary address which is in
use.

The name given for the signup is different from what is given for the credit
card details which I received for the chargeback.

I sent all details that are available here to their address to give details
of the account being setup.

The payment would have only gone through if they went through the full
account signup and gave their CC details, and it is noted a few times not to
continue unless they are going to purchase an account as it will take the
money from the acocunt information they provide.

I know they received the account info as they are currently using their email address that they signed up with.

I tried contacting them about this but havent received any reply...

Anything else I can do about it?

John
 
John Diver said:

The name given for the signup is different from what is given for the credit
card details which I received for the chargeback.
John
Click to expand...

Hi John,

Sounds like it may be a potential fraud.

I would contact the card holder (directly by phone if possible - or have the credit card company do it) and verify that 1) they know the person who signed up for the account and 2) If they authorize them to use the card for this type of transaction.

If the answer is yes to either question, you have to ask them to reverse the chargeback.

If the answer is no, then provide all details to the credit card company so they can lay charges against the fraudulent credit card user.

If it is fraud, unfortuneately there is nothing you can do. You will have to deal with the chargeback and the associated fees.

Hope this helps...


***EDIT*** - John, in the future, you should consider getting an Internet Merchant Account and setting the fraud filter to hold these types of transactions (where the name of the account holder doesnt match the name of the signup - also filter for address and phone number). If you already have a merchant account, just go in and set your appropriate fraud filter. I know merchant accounts tend to be more expensive then 3rd party payment processors - but these types of things make them more affordable (in fees, hassles, stress, etc...)
 
Thanks Andrew, I left it until now hoping that I would get a direct reply to the email I sent the user but still havent got it.

I think the next step will be to try contact the credit card holder some other way, I dont see a telephone number here, or if I cant, then I will contact the credit card company and send them everything I have, like you said.

I gave everything I had to 2CheckOut, who processed the order, and they just told me that its nothing to do with them and I have to deal with it myself...not the type of support I want right now.

I will try one last email and see if I get a reply to that but the only other info I have here from the credit card holder is their address, I think it would be easier contacting the credit card company.

Thanks Andrew,
John
 
Step 1:

Suspend there account, they may be trying to use the server to do something bad. Customers who signup with frad credit cards are always up to no good.

Step 2:

Unless you have there signature on file there is nothing you can do about a chargeback. This is one reason why I call all my new customers.

I got a chargeback for the same reason about 6 months ago but it was only like $15 so not bad but not sure how bad in your case.
 
At THB, we get ALOT of these damn chargebacks.. really getting on my nerves.. weird thing is, they stay valid for months at a time, then chargeback.. like people have not been checking their statement each month I guess
 
LOL - yeah it does seem like that.

Basically, people get their statement anywhere from 10-30 days after the day of purchase.

Then, let say another 10-20 days for them to call their credit card company and start the process.

Then, another 2-6 weeks for the request to hit your desk...

best advise I can give anyone is keep very clean records. You can fight certain chargebacks, even if you dont have a signature. The process is long and difficult, so I wouldnt bother for a $10 transaction...but if its a couple hundred or more, it may be worth your while....
 
Well, theres a formal policy in place with the merchat provider.

Call them, and ask them what their process is for disputing a chargeback.

The more paperwork you have, the better.

IP Address signed up from
Any email correspondance with the customer (proving they are using your services and bought them willingly)
Copy of your TOS and cancellation policy
Anything with proof of a money back gurantee is nice as well
etc...

I must stress however, if the purchase was fraud, you have NO recource. the merchant provider will withdrawl the funds from your account and more then likely charge you a penalty.

Hope this helps...
 
The best way is to call all new customers. And in the extreme require them to fax and sign a form with there authorization releasing funds from there credit card. I thought of doing that but have not had any problems lately. I don't get a lot of customers so the ones I have is my bread and butter.
 
Completely agree with turnkey,

The best defense is to get a signed authorization...

But, even if you dont have that, theres still plenty of documentation that will work.
 
I dont think using fax would be a good option if your hosting a lot of sites which arent business related, its likely that a business will have a fax machine, but not a normal web user.

That would resolve all problems but dont think it would work for anyone and would probably cause more problems than its worth in the long run.
 
I don't think a day goes by when we don't get a chargeback.. one of the other admins handles that, am I ever glad, I think I would lose my mind with all of them :p
 
Hi John,

It most def would be a hassle - but if you want 100% protection...well....

Other then that, just keep really detailed records - also, my original advise stands - get a real merchant account - the fraud filters have saved us an enormous amount of time (and phone bills) and your increased ability to defend yourself against chargebacks makes it worth the cost...

Anyway, best of luck, and let me know if you need any help fighting this...

ps - any news on whether this was fraud or not?
 
Hey Andrew,

Still no idea yet so its time to contact the credit card company today, just have a bit of work to do first but I will be doing it most likely within the next few hours to try get this sorted soon.

The thing that seemed odd was that a different name was used in the signup, but everything else seems legit.

I do try keep as detailed records as I can and I have quite a lot of information available here for each signup and payment which I will be making available to the credit card company.

I am considering going with a merchant account but I know I will have to read into it a lot more before doing it.

Thanks for the advice so far Andrew!
John
 
Hi John,

Not a problem...

I must admit, I have no knowledge of Merchant Account providers in Europe. I'll try to dig up a couple of names for you, but besides that, I dont think I can be much help...

I can def help you fight this chargeback though (if indeed its not fraud) :) :)
 
Thanks a lot Andrew :)
And a....Gordy :D hehe

Will let you know what happens when I do contact the credit card company anyway.
Hopefully they can help get it sorted, might still be a mistake on the behalf of the account owner but still have to see yet

Thanks!
John
 
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