Should you still take credit cards anymore? A horror story about Square.

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technut

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Should you still take credit cards anymore? A horror story about Square.

Hi all, after many corporations [BIGGER THAN ANY OF US] have been hacked and credit card information as well as client information had been stolen recently, if you watch the national news channels. In addition fraudulent charges had been made to theses same cards, someones got to pay for all this corruption. If you think for a New York minute its going to be the credit card companies or the financial institution "YOU CAN FORGET THAT". You'll be the one footing the bill.

Case in point. Read this horror story about a business man using Square. A small device (dongle) that takes credit & debit cards.

http://alexshvartsman.com/2014/02/11/screwed-by-square/

Also read:
WEBPRO NEWS
Business Owner Details Getting 'Screwed By Square'

By: Chris Crum | Staff Writer

Finally gets his money and switches to PayPal
Business Owner Details Getting 'Screwed By Square'

https://twitter.com/WebProNews/status/434081633600155648/photo/1
 
Makes me weary of services such as Stripe and Braintree. At the end of the day, it's up to the business owner to ensure maximum protection against fraud. The processing companies can't do much.
 
Simply never keep that information on your servers and that way the risk that client data will be stolen will greatly be overcome. You can relay the task of securing your client data to a trusted clearing company. The likes of PayPal if you like
 
Depends on the level of fraud check each user is subjected to. Such cases should be minimal so long the fraud check isn't too loose.
 
If you use the stripe or Braintree modules for whmcs or even code something using their platform they store all CC info. We use the stripe module and no CC info is stored on our servers. Messing with PCI compliance and all that isn't something we want to focus on. So it makes more sense for the processor to house the info.
 
I know it's getting worse. When we started, fraud was an issue, but it was not a large part of our business. Now, we have to screen every single order regardless and still it is hit and miss.
 
Just saying that in paypal disputes start off with the "According to Paypal terms of use , Buyers DO NOT have the "Buyers Protection" when dealing with INTANGIBLE ITEMS (Virtual goods)" won me all the cases so far.
 
Credit card data are targeted nowadays. Stolen credit cards are used to purchase the services. If you are storing credit card information on your servers, you will have to secure them as well as you must be PCI compliance.

Doing manual fraud check it practically impossible when you have hundreds of transactions each day. Other option is, use third party payment gateway like PayPal.
 
I don't know about you-all but we've been in business for over 10 years and during all that time not until the last 2 years have we ever seen so much fraud and client charge-backs. Specifically on many occasions we have been in a dispute with PayPal, Visa and Master Card over charge-backs that "Hands Down" our billing and specific documentation has proved "Beyond Any Reasonable Doubt" we were not liable for any fraudulent charge-back. However lately its the financial institutions policy to side with the Credit Card owner or PayPal's client 99% of the time. So each time we lost the dispute, and to add injury to insult we had to pay "Each" time we disputed a charge-back. Even our merchant service could not understand how we could have possibly lost our charge-back disputes. It all came down to if we had proof of using 'Verified By Visa" or not or some other technicality. We have since removed the ability to use credit cards in this manner and this has helped some in reducing our fraud and charge-backs to date but does place a burden on us for payments.

The landscape has changed. It use to be Visa, Mastercard and PayPal would side with the merchant in most case's or when in depute, but this is not the case anymore as over the last several years PayPal, Visa and Mastercard had changed their rules and merchant support and now sides with the client and not the merchant anymore. Case in point we have lost all our last several disputes with PayPal, Visa and Mastercard because of a technicality. What's a reputable business to do!
 
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