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Unfortunately, the law basically states that when you take card payment without proof of swipe and (not or, _AND_) original signature on an imprinted voucher form, you have zero defense in case of dispute. That's just a cost of business for ecommerce merchants. That means no matter what, you WILL lose most if not all of the disputes stemming from on-line sales. That's just the way the system works. There are many things you as a merchant can do to minimize losses of this nature, but obviously you received no such training. In my book, any processor that sets up an ecommerce merchant account without basic training is guilty of severe short-changing. You need to either (a) insist on some training and education or (b) get yourself a new processor.
BTW you are playing with fire. When you reach a certain pre-defined threshold ration of chargebacks, your processor will shut you down and probably put you on the TMF (Terminated Merchant File), effectively putting you out of business. You need to seriously take steps to reducet your chargeback problem today before it's too late.
Yes, your processor can shut you down and you do not want that to happen. I would recommend choosing a processor that will fight for you when chargebacks occur. It's also important for you to have a good relationship with your processor, so they can provide you with ways to avoid the constant chargebacks that are occuring.1 of 1 people found this helpful
WhatEveryMerchantShouldKnow.com is a great resource for business owners who have questions regarding merchant services. There is a lot of useful information on the website that will help you with this problem as well.
Shop around for another processor that will work harder for you and has tools designed to combat this fraud. These may be more expensive - but probably not as expensive as the losses you have now. Or, think about other methods of both delivery and payment: Use other companies to ensure delivery - ebay, amazon, clickbank, etc. Also look into other payment forms like paypal.1 of 1 people found this helpful
Chargebacks are a part of doing buisness and many people take advantage of that. Shop around for a comapny that wants to work with you.
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One of my customers is having a similar issue. There's not much I can do, unfortunately this situation falls back on you the merchant. E-Commerce accounts are always prey to these types of situations.
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We are a small on-line business that accepts major credit cards as payment. We are experiencing many losses in chargebacks because the credit card holder claims they did not authorize the purchase. We use BofA's basic fraud package but still the chargebacks happen. We respond right away with proof of delivery but it seems that if someone wants to deny that they authorized the charge, we're stuck with the loss. Has anyone else experienced this and found a solution?