Loading Form...
Thank you
Mar 25, 2008 | 3 minute read
written by Linda Bustos
Credit card companies protect consumers against credit card fraud by taking care of disputes whether they be incorrect amounts, credit card fraud, stolen credit cards or if the merchant never delivered the goods, or faulty goods.These refunds are called chargebacks. Not only are they disappointing, but they can be downright dangerous to your online business, putting your merchant account at risk if you receive too many.
As an online retailer, you face the threat of customers that make a purchase, file a phony dispute with their credit card company and keep the merchandise and their money. And credit card companies have the right to pull that money from your merchant account (credit card companies don’t cover the cost themselves) – leaving you without the product and without the cash.
There are 5 common chargeback tricks that dishonest customers may pull:
1. Claim merchandise was never delivered.2. Claim merchandise was returned, but the merchant never refunded the money.3. Claim order was cancelled but shipped anyway.4. Claim merchandise was damaged or otherwise unsatisfactory.5. Claim they were not the one who ordered the product (credit card fraud).
After disputes are filed, the customer’s credit card company will conduct a two week investigation. But your chances of winning the dispute are greatly improved if you follow this advice:
Jeremy Zongker, CEO of Creditor Web, an information resource on credit cards and credit card processing offers these additional tips:
Sometimes a customer may not recognize your merchant name on her statement, or even worse, your merchant name is different than your online store name (a parent company, perhaps). Please make sure you don’t confuse your customer this way!
There are merchant account providers who will list your phone number on the statement so customers can call you before the credit card company.