Chargeback Fraud

[CompTech]

How can a person tell if a person claiming a false chargeback has done this multiple times, to other merchants? We were just hit with a completely false chargeback claim, which we proved false through documents signed off and other facts but wonder what possessed this person to commit this fraud, and if they have tried this before. Is there a way to check people out and their history of charging back things and services received in the past, placed on their credit card? Thanks for any feedback. Greatly appreciated.

 

[mraikes]

Only their card issuer would know such details and there's zero chance of that information being shared with you without a court order.

 

[Markverhyden]

Only their card issuer would know such details and there's zero chance of that information being shared with you without a court order.

^^^ This. It's sad but it is a reality of taking CC's. When I worked at CompUSA they had a database of customer names who engaged in questionable practices. Had one mother/son team. They would come in and purchase a complete, and very expensive system. The mother would give her CC and then leave saying she had to do something, leaving the son to sign. Poorly trained cashiers would let him sign. They would do a charge back and the signatures would not match so we lost.

 

[HCHTech]

They would do a charge back and the signatures would not match so we lost.

Wow - sneaky. ...and obnoxious. I worried about chargebacks a lot when I first started taking CC, but several years of experience behind me, I've (whispering so as not to anger the gods) never had a chargeback. Shhhhh. nothing to see here.

 

[Markverhyden]

Wow - sneaky. ...and obnoxious. I worried about chargebacks a lot when I first started taking CC, but several years of experience behind me, I've (whispering so as not to anger the gods) never had a chargeback. Shhhhh. nothing to see here.

It's a matter making sure you dot your i's and cross your t's and not the other way around. I don't care what a customer says or how good they may be. If the person present is not the card holder nothing will happen. Actually that's a bit of an exaggeration. If it's a decent size business with corporate cards I'm not so picky. Just did a plotter repair at Genzyme a couple of weeks ago and took the Amex over the phone.

 

[GhostDog]

Not much as merchant you can do except:

1) Due diligence to make sure the card holder is the one signing as mentioned above. I know some retailers locally ask for ID with every transaction and actually check signatures.

2) Know your processor's policies on chargebacks, and don't just choose a provider based on low rates. When I worked at a hobby shop we had a woman return a R/C plane her son bought and crashed. She said it should not have crashed. We still ended up with a $25 fee just because she filed the chargeback, regardless of the result of the investigation.