Id love to be aware what other hosts do regarding whether they have been the victim of the account utilizing a stolen charge card.
I'm also getting screwed at this time.

I've a merchant account with InternetSecure...I have been with them for a long time, but recently i have had people purchasing my CGI scripts, then likely to their bank and saying they did not buy anything, and also the bank refunds then from my account plus charges me another $25.

It's less than just like your condition, but it's similar meaning the charge card holder says they did not purchase anything, and i'm getting screwed.

I've asked the way i can combat the fraud, and here are the reactions my credit card merchant account sent me:

For just about any fraudulent use suspected we've two systems in position within the new
system, see below.

1. AVS (address verification system) which inspections the data given on
the web form and inspections it from the card holders info on
their statement with the banks. Not every banks make use of this, however the ones
which do, when the address doesn't match it'll Voided.
2. Blocking, which could remove information leading us to think
that there can be fraudulent use involved. (i.e.: e-mail addresses,
nations, IP addresses and charge card amounts)

In the event you feel after getting in touch with this customer the person may be
fraudulent, you need to either quit taking orders from their store or contact and also have that individual blocked out or contact

Within the banking world, Business on the web is known as "card not present"
or "non-in person transaction." They are treated in the same way to
Catalog Shopping. The foundation rules associated with a charge card transaction are when the
customer exists, when the card is sharpened (reading through the credit card number from the
magnetic card swipe), when the signature is checked using what seems around the
back from the charge card then, and just then, the merchant can tell of
being compensated.

Some charge card companies have different methods using their rivals.
Whenever a charge card holder lodges a complaint having a charge card company, and
in the event that transaction continues to be processed on the web, many will:

1. Instantly pay the cardholder and charge the transaction to
the merchant, that is known as a Chargeback.
2. Request to learn more before making the decision, that is known as a
Obvious Copy Request. This method is a that's utilized by individuals who request for
more details. Before giving a chargeback they'll request for additional
specifics of the purchase under consideration. When the merchant provides
obvious evidence the cardholder likely processed the transaction (i.e..
courier slips signed through the card holder or a kind of form or receipt signed
through the card holder permitting the purchase) , they will think about this in
if you should side in support of the merchant. If they don't, and side
using the card holder, a chargeback is going to be released towards the merchant.

Within the merchant agreement, we all do condition the potential risks before registering being
a merchant: "Merchant shall indemnify and hold harmless IS, its employees,
officials, agents and company directors, all claims, expenses, and deficits
occurring unconditionally regarding the IS's sales of Approved items
to Clients particularly including, Clients refunds or returns and

"Under the merchant contracts with Visa/MasterCard/American stock exchange they don't
guarantee non-in person charge card transactions, despite the fact that the
original transaction was approved. They merely ensure the transaction if
the merchant saw the credit card and it has a signature from the charge card receipt.
Fundamental essentials rules, but Internetsecure will forward any correspondence from
the merchant in these instances."

Final point here is any time you have a transaction there's a danger - you've
to create the company decision of whether it's worthwhile or otherwise. Any
business continues to be associated with some bad dept expense - possibly it could
assistance to think about your chargebacks badly dept. Checking profits on the
regular basis for something that looks odd or perhaps is missing proper information,
with the merchant area under "Transaction Query" is a great habit to obtain


We've experienced exactly the same issues with people legitimately purchasing our items or services after which charging back. What we should do now's include language within our contract that states when they chargeback we'll charge a extra $75.00 collection fee additionally towards the original fee. We turn them to our collection agency when we believe they bought the merchandise and did a chargeback in bad belief. Since we began this, our chargebacks have dropped to essentially . If only more online retailers would do that... I understand most of us retailers are becoming folded by clients tugging this scam because online retailers allow them to pull off this. We're also focusing on defending these people.



That do you utilize for you personally collections. We've clients who make use of the services and they decide 6 several weeks in the future to shut the account and perform a chargeback becuase the web business community is not on their behalf, they're saying they didnt obtain the service or since the site was lower for as an hour they are saying they didnt obtain the service they taken care of, one jerk even explained "I" broke my very own tos, I told him to show him, dumb moron wanted reimbursement for six several weeks because we'd a router problem for like 3 hrs. In 6 several weeks his server NEVER went lower.

But exactly what does charging $75 solve? They'll just fight it again and you'll loose (again).
What we should do in order to avoid stolen charge cards would be to have two seperate information sections. The first is to join up the website and also the other is perfect for the charge card. When we believe that the credit card is stolen or anything feels "hinke", only then do we call the amount listed. It's less expensive to pay for .50 cents in lengthy distance charges rather than get hit having a $25.00 chargeback fee.

Another sure way to check on for stolen cards is that if the client wants your greatest take into account 1+ years. On these we ALWAYS call the charge card telephone number listed.

Up to now, knock on wood, we have only had one stolen card used which was a foreign client.

Mike Astin

[This message continues to be edited by MikeA (edited 07-20-2000).]
Im on alert after i see they:

A: wish to register a brand new site
B: The admin info has run out of the states and also the CC info comes from the states
C: they would like to Luxurious package

Which means you call the CC company if this looks funny. Interesting.
Ive considered asking for a photocopy from the persons motorists license be faxed over, but when the CC was stolen from the wallet they might obtain that also.
No, I do not call the charge card company, I call the individual's telephone number they complete around the order form. Once the person states, "what are you currently speaking about, Irrrve never purchased any web stuff", well you already know you've got a fake card.

Give them a call. Believe me, it really works.

Mike Astin
Lately, I have also seen numerous bad cards/charge backs. I believe it is best that the point is a fee covers a particular amount ( I personally use the $50.00 mark) to call the organization or card owner and verify the charge. I am type of tired about these attitudes of "the customer is definitely right"... much more fact a lot of the time, they are searching to get away from a bill. Additionally, though I allow sign ups for approximately ten years, I do not offer anymore than 2 on my small site... if you Get burned, you are refusing to eat the registration fee for ten years... AND, I condition a disclaimer when electric power charge for any domain is created in bad belief, the domain becomes property of my opportunity and will also be offered towards the greatest bidder. To date, I have only had ONE major charge back ($400) ... and that is where I wised up. Apart from that, should you open you to ultimately automation, you open yourself towards the charge back factor. Honestly, I attempt to conduct business along with other merchants only... so there's an interest in the domain/package/etc... along with a merchant is not as likely to visit and charge back whether they have clients on the line.

As well as for individuals who pointed out debt collectors, I am curious regarding whom you each one is using.


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