(Marketing) Ways to decrease fraudulent credit card chargebacks

[John Scott]

What tips have you got for me?

I'm referring to fraudulent credit card chargebacks where people claim they never received the item (intangible) after they received it.

[Bluecircle]

Respond to the chargeback with the tracking number proving it was sent. Also make them have to sign on delivery.

[searchbliss]

Originally Posted by John Scott

What tips have you got for me?

I'm referring to fraudulent credit card chargebacks where people claim they never received the item (intangible) after they received it.

I have the same problem with intangible goods myself. I have auto-generated email download liks for purchased products with plenty of tracking information. But most often this "proof" is ignored (PayPal)...and sometimes not. It depends who is on the case.

[shahab6]

For paypal, in the other shipping option if you write virtual item and on the bottom virtual item, that will take care of it.

[john587]

This probably is not the answer, but you could stop accepting credit card payments. lol

Na, I've also heard this is a problem and it seems to be getting bigger. Lets just hope it doesn't get to much further out of hand.

[John Scott]

Unless I know the party, I have been opting to go with wire transfers recently. Wire transfers for big sums save me money - less transaction fees than credit cards.

Also, when applicable, just have the other party deposit the funds directly into your account. Unlike wire transfers, direct deposit avoids all fees.

[searchbliss]

Originally Posted by shahab6

For paypal, in the other shipping option if you write virtual item and on the bottom virtual item, that will take care of it.

How would this work for PayPal shopping cart payments?

[shahab6]

Originally Posted by searchbliss

How would this work for PayPal shopping cart payments?

Same way, as long as you write virtul item on shipping method, it will work.

[searchbliss]

Originally Posted by shahab6

Same way, as long as you write virtul item on shipping method, it will work.

Like this?
<input type="hidden" name="buyer_credit_shipping_method" value="Virtual Item">

I thought this had to be a dollar amount?

[labrocca]

Don't accept paypal payments from anyone not in the USA or with a verifiied account. I am willing to bet a LOT of your fraud originates from India.

[upsonians]

well john i m the same problem.Nice thread.Hope some cool ideas may come out here.

[Sadierhianne]

I don't think this applies to John or anyone outside the UK but anyone using the paypal processor can print postage labels in Paypal, this must prove to paypal that the label has been made and paid for - the proof of postage needs to be stamped at the PO and any losses would then be investigated by RM.

This is one of the benefits of PP over the credit card processors but i agree with the above, try to use alternative payment options.

I have never had anyone claim that they didn't receive their parcel but then my store is hardly a high fraud target.

I have details on my site somewhere too which, is designed to make people think again - the majority of parcels are tracked and require a sig so really can't go missing.

[nuttakorn]

For selling service like hotel reservations, it is easy to have fraudulent chargebacks. We need to screen the customers.

[Joaquin Maldonado]

What tips have you got for me?

I'm referring to fraudulent credit card chargebacks where people claim they never received the item (intangible) after they received it.

This happened to me quite often with paypal when not following-up fast enough or immediatly after the sale. If it's concerning paypal John, you might want to add a simple reminder at the closing of your salesletter or at the checkout of your e-delivery that...

"No matter if it's 11:59pm or 2:00am, your order will be proccessed instantly" Expect an email in the next seconds upon ordering. Works well if you want people to stop smoking now (even if they would probably smoke in 1 week after getting sold)

You could also subscribe to readnotify.com and know if the person at the other received and open your email. Heck, the system most often easily tells you the street nearby where you're living. Good software, definitely eliminates headache start-ups when brainstorming where that high end sale went and it got delivered.

Joaquin

[Vini]

In the gaming industry we have a lot of that. That is why we ask that the customer provide us with a scanned copy of their ID and or utility bill. Over certain amounts we also have him sign a form with the purchase amounts reconfirming the sum/s & dates of the purchases. If you can get them to do that and come out smiling, you did a good job.
A LITTLE TIP: SOMETHING FREE FOR THEIR TROUBLE WORKS

[swiftmed]

for me i always use registered signed post, so that when they receive their item, they have to sign to say they have received it. as for online products which you can download, i havent a clue how you could protect yourself there.

maybe have some sort of password system setup where when somebody has purchased something, a unique code is sent to them which they need to use in order to download the file. you can then have the system manually log that the code has been used in order to download a product. you then have proof.

how you could make or find such a system, im not sure.