Chargeback Protection for Your eCommerce Store
In everything we do there will always be someone that will try and knock you down. When that happens you really have to dust yourself off and as they say get back on the horse.
Today we got another order which came back as a high risk purchase...well what I found
out and I want to share with all of you if you didn't already know.
When people commit credit card fraud they are normally over seas in this case it was Indonesia and the way the go about it is. They would purchase an item most of the time it's a small order if they $50 or so that is if they want to get way with it.
Then you have the ones that will make a large purchase because they feel safe or they are just bold, then a few weeks will go by then when the real owners of the credit card check their statement the result will be a chargeback, because.
1. They didn't place the order/purchase
2. They don't get what they supposedly paid for.
If you're a merchant that's not going to be good for you because if you're start-up business that income might be have been used for any number of business related purchases or just operating expenses.
Either way the real card holder is out the money and the merchandise so they will be looking for restitution and who will the card company look for first or so it feels.
You, the store that accepted the charges and fulfilled the order, not the one that stole the card hopefully they will get their just desert somewhere down the line.
In the meantime you're getting hit with a chargeback, which means you're losing money and don't forget you will be charged a chargeback fee. I would have never thought that after I started making sales which is the one thing any eCommerce business wants, that two thirds of my sales would be high risk purchases.
So as a means of protection for both my customers and ourselves I had to take some advice to automate the fraud protection. The thing is even though this is something we have to live with now a days with online shopping or even just shopping period.
You have to be proactive and check you're monthly credit card balance and dispute everything that's questionable. If I can offer you a safe place to shop.
Though we don't collect card information it's still our job to make sure you are also protected from fraud when we come across them and if you're a online store owner they got a bunch a apps for that, which will hopefully turn you into a loyal customer.