Solution to chargeback on credit card

[premiercolour]

An online order came in for a Graphtec feed motor from our shopify platform. No big deal. Another order that we need to fill in. Ordered from Graphtec and shipped the order. After a month, we got a chargeback from the customer. Fraudulent transaction. Their words against ours. I have prepared to lose the $450 ($426 for the motor and 2nd day for $24). I have tried to fight the claim and lost every time. We have the tracking number, signature on the package. It seems like the only thing we can do is to document who had made these purchases and try to stop it before it gets shipped out.

What's your solution for chargeback? Wait and get ripped off?

Any comments are appreciated.

 

[Solventinkjet]

There's usually 2 situations with chargebacks.

1. A criminal simply used a stolen credit card to order on your site and

2. A customer isn't happy with the transaction.

In the first case the only thing you can do is prevention. Learn what a fraudulent order looks like and ask for more information from the customer. 99% of the time if it's a scammer, they won't even respond and you cancel the order. The other 1% they give you the info and you can be more assured they are legit. Signs of a fraudulent order are mismatched billing and shipping addresses, a generic email address (bob@gmail.com), it's shipping to a shipping forwarder, they almost always want overnight shipping, and if they buy parts that simply don't match like a print head for a JV33 but dampers for a Mutoh ValueJet.

In the second case it's all about having a solid and easy to understand return policy where the customer has agreed to the terms before making a purchase but even then sometimes the bank just sides with them anyway. The best way to win chargebacks is to prevent them in the first place but it's inevitable you will get 1 or 2 a year in my experience.

Normally I wouldn't be upfront about advice to a competitor but these people hurt both of us!

 

[Texas_Signmaker]

You're stuck as far as the CC processor goes. I called the police and filed a report. They actually were able to recover the item the guy bought and filed a fraud charge against him. I don't know how they found it but it was recovered at a pawn shop in Houston.

 

[premiercolour]

There's usually 2 situations with chargebacks.

1. A criminal simply used a stolen credit card to order on your site and

2. A customer isn't happy with the transaction.

In the first case the only thing you can do is prevention. Learn what a fraudulent order looks like and ask for more information from the customer. 99% of the time if it's a scammer, they won't even respond and you cancel the order. The other 1% they give you the info and you can be more assured they are legit. Signs of a fraudulent order are mismatched billing and shipping addresses, a generic email address (bob@gmail.com), it's shipping to a shipping forwarder, they almost always want overnight shipping, and if they buy parts that simply don't match like a print head for a JV33 but dampers for a Mutoh ValueJet.

In the second case it's all about having a solid and easy to understand return policy where the customer has agreed to the terms before making a purchase but even then sometimes the bank just sides with them anyway. The best way to win chargebacks is to prevent them in the first place but it's inevitable you will get 1 or 2 a year in my experience.

Normally I wouldn't be upfront about advice to a competitor but these people hurt both of us!

Thanks for the great suggestion. I see competition as a mirror for us to grow stronger. To work more hours after work. Good luck to your business. Always enjoy your technical expertise.

 

[premiercolour]

Thank you for the information. Our police told us to go to their State to file a complaint.

 

[NazGraphics1]

just provide the bank the charge receipt for charge back you get paid and the person saying he did not used the card he or she will credit

 

[Solventinkjet]

just provide the bank the charge receipt for charge back you get paid and the person saying he did not used the card he or she will credit

It's not that easy unfortunately. Someone has to pay at the end of the day. The bank never pays so it has to be the card holder or the merchant. If it turns out the card holder's card was stolen, the merchant pays 100% of the time. Basically it's up to the merchant to detect fraud. That's why it's better to avoid getting charge backs at all as a merchant. The only time merchants win is when they have a rock solid return policy and the customer is obviously trying to abuse it. In almost every other case the merchant loses.

 

[Notarealsignguy]

Anytime that I have received a chargeback, I first call the bank. I don't trust that the little form you fill out is actually read by anyone half of the time. Also, make a WTF call to the customer. Sometimes people see charges they don't recognize and jump right to a dispute since it is so easy to do online. If that fails, keep calling the processor and plead your case.
Another thing, make sure you check how your company name displays on charges. It should match the name of here the customer bought the item from to minimize any confusion.

 

[Solventinkjet]

Anytime that I have received a chargeback, I first call the bank. I don't trust that the little form you fill out is actually read by anyone half of the time. Also, make a WTF call to the customer. Sometimes people see charges they don't recognize and jump right to a dispute since it is so easy to do online. If that fails, keep calling the processor and plead your case.
Another thing, make sure you check how your company name displays on charges. It should match the name of here the customer bought the item from to minimize any confusion.

Yup. For the longest time our receipt would say "Signage Specialist" instead of "Solventinkjet.com" and people would call all the time asking why they had a charge on their card. But sometimes people would just charge back without calling!

 

[premiercolour]

Good stuff. I called using different phone numbers, text messages, emails. None replied. It seems like they do it for living. I feel so sick by it.

 

[2B]

Yup. For the longest time our receipt would say "Signage Specialist" instead of "Solventinkjet.com" and people would call all the time asking why they had a charge on their card. But sometimes people would just charge back without calling!

Been there and done that.

run multiple businesses and finally decided to have a dedicated processing account for each name.
Saved so many calls "WHO ARE YOU" or the hassle of fighting chargebacks

 

[Texas_Signmaker]

Like a sign product or something you sold on ebay? I'm trying to imagine a sign ending up in a pawn shop...

It was when I worked at a computer shop. It was a laptop

 

[GAC05]

It was when I worked at a computer shop. It was a laptop

Hunter tried to stiff you?

 

[Notarealsignguy]

Hunter tried to stiff you?

No but bubba did. He told me not to tell anybody

 

[NazGraphics1]

It's not that easy unfortunately. Someone has to pay at the end of the day. The bank never pays so it has to be the card holder or the merchant. If it turns out the card holder's card was stolen, the merchant pays 100% of the time. Basically it's up to the merchant to detect fraud. That's why it's better to avoid getting charge backs at all as a merchant. The only time merchants win is when they have a rock solid return policy and the customer is obviously trying to abuse it. In almost every other case the merchant loses.

back in the days i use to have a shoe store customers purchasing shoes with the credit card weeks later i was receiving charge backs from merchant services i have send the receipt copy and the have returned my money and customers usually get credit from the credit card bank was getting about 3 to 5 charge backs from the the banks

 

[Stacey K]

A couple years ago my sister got a charge on her CC for a golf cart seat, around $400. She called the police but they weren't too interested so she enlisted me, and we went to work! We called the golf cart place where it was purchased and they gave us the shipping address, it had been delivered via UPS to a home in my town.

We looked up the address, found the tax records online and...it was a WELL KNOWN guy in town and he.....fixed and sold used golf carts! At that time in my city there was problems with people putting those credit card readers at one of the gas stations. They also had warned citizens about hand held readers that could read through your purse or pocket. This cart guy also brought his kids to my sisters daycare so it WAS possible that he was able to scan her card there. It's also the same station my sister frequented for gas.

We were able to get the IP address (I do NOT remember how we did this, I think the golf cart seller sent her the entire transaction and we found it that way). Somehow we found a person using that IP address in central WI so that's where the order had been placed out of. We stalked him on FB. He ended up being FB friends and graduating with the thief cart guy.

SO --- my sister calls thief cart guy and played dumb saying, "Hey, somehow this golf cart seat got charged to my card and delivered to your house, that's super weird!!!" - HE ADMITTED IT, he asked her how much it was for and said he would pay it right away. He said, "That's weird, something must've happened when I entered my card in, sorry about that!" - he paid her the next day!

We figure what happened is he got her CC info from the gas station and since it's widely used by truckers he didn't recognize her new married name and used her card? He probably had his friend in Central WI do the ordering and had it shipped to cart guys house. This cart guy sold 100's of carts over the years. His dad lived next door to my shop where they sold them from his garage...I'm telling you...100's of carts. I can't imagine how many of those cart parts were stolen!!!!

We are not nerds, it took us a couple weeks to figure out how to do all this IP address stuff, but it was very satisfying being the winner in the end.

 

[Boudica]

Stacey needs to moonlight as a detective!

 

[Eforcer]

An online order came in for a Graphtec feed motor from our shopify platform. No big deal. Another order that we need to fill in. Ordered from Graphtec and shipped the order. After a month, we got a chargeback from the customer. Fraudulent transaction. Their words against ours. I have prepared to lose the $450 ($426 for the motor and 2nd day for $24). I have tried to fight the claim and lost every time. We have the tracking number, signature on the package. It seems like the only thing we can do is to document who had made these purchases and try to stop it before it gets shipped out.

What's your solution for chargeback? Wait and get ripped off?

Any comments are appreciated.

We had a chargeback of $877.60 from an order of $2150.00 An account after two months of doing their order told AMEX that we over charged by the amount stated. After three weeks of back and forth with AMEX, they still took back funds. AMEX just told me to take it to small claims. I no longer take AMEX or Discover. And every customer that wants to use a card must fill out a form. A form that shows that they can't chargeback after order is processed. 18 years now and still no charge backs.


Sign Up!

 

[victor bogdanov]

I sell online, get a few "fraudulent" chargebacks every year. Most of the time I lose the chargeback. I've had a few times where I called the customer that filed the chargeback and they say I'm so sorry it was an error and they supposedly contact their bank to cancel the chargeback but I still lose. I'd say 1 win to 10 loses ratio on charge backs. Totally in the hands of the credit card company and they will side with their customer, the bank doesn't lose either way so they don't care and will make their credit card holder happy

 

[Eforcer]

I sell online, get a few "fraudulent" chargebacks every year. Most of the time I lose the chargeback. I've had a few times where I called the customer that filed the chargeback and they say I'm so sorry it was an error and they supposedly contact their bank to cancel the chargeback but I still lose. I'd say 1 win to 10 loses ratio on charge backs. Totally in the hands of the credit card company and they will side with their customer, the bank doesn't lose either way so they don't care and will make their credit card holder happy

This is a fact. Banks seem willing to help...But know their major funding comes from. Stop accepting transactions without protection.