My Merchant Account Blog
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hopefully it will help explain some fraud attempts and how to notice fraud
on your orders.
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Merchandise Not Received
Thursday, October 04, 2007
This chargeback is one of the more common reasons. Consumers order a product and then call the issuing bank to inform them and hopefully get the money back. The issuing back will start the process for you, and usually will credit your account immediately while informing the acquiring bank and the merchant account provider to start the retrieval request and possibly charging you, the merchant, a retrieval request fee.The easiest way to respond to this chargeback code 30 is to provide the merchant account provider with a signature stating the merchandise was delivered. This is what the issuing bank will be looking for. If you do not have this, it is very difficult to prove the product was received. Some companies require a signature only over a certain amount - this might be something to consider as well.
Specifying a Date of Delivery
This is very popular with a lot of merchants, they want their customers to know when to expect the merchandise. However, this can work against you. If you tell the consumer the merchandise will be delivered on Wednesday but it was actually delivered on Thursday, the consumer has a reason for a chargeback.The issuing bank will not be looking for proof of delivery but looking for some type of an agreement from the consumer saying it is OK to be received a day later. Send the consumer an email and get his / her response. Maybe even consider a fax with a signature stating that it will be OK for the goods to be delivered one day late.
If the consumer keeps the merchandise, you have a case against the consumer. You can contact the consumer informing them that you are going to sell the chargeback. If you need help writing your Terms of Service to protect yourself and business and to have the ability to charge fees when you get a fraudulent chargeback by a merchant, contact Jeffrey Cohen.
Comments
Anthony said...
Hi Corey,
I've been reading internet msgs on chargebacks ( esp. with PayPal ) since currently I'm a victim. In short, the buyer got my item on July, filed a chargeback in mid October, and PayPal decided they could not win and let the buyer's credit card company took my money by end of October.
As expected, the many times I called/emailed PayPal I was met with BS like they'd look into that... But the thing is, I was given zero info on things like what caused the chargeback ( merchandise not delivered, not as described, or what ... ) and what the buyer's credit card company was. Therefore, I could not even go after anything.
I filed a complaint with BBB at San Jose but I don't foresee a good reply.
I read through your postings, but just wondering if there's anyway I can get the buyer's credit card company name so I can submit my proof directly to them ( I could not confirm if PayPal had even raised a finger during the investigation )?
Any help is appreciated.
Anthony
I've been reading internet msgs on chargebacks ( esp. with PayPal ) since currently I'm a victim. In short, the buyer got my item on July, filed a chargeback in mid October, and PayPal decided they could not win and let the buyer's credit card company took my money by end of October.
As expected, the many times I called/emailed PayPal I was met with BS like they'd look into that... But the thing is, I was given zero info on things like what caused the chargeback ( merchandise not delivered, not as described, or what ... ) and what the buyer's credit card company was. Therefore, I could not even go after anything.
I filed a complaint with BBB at San Jose but I don't foresee a good reply.
I read through your postings, but just wondering if there's anyway I can get the buyer's credit card company name so I can submit my proof directly to them ( I could not confirm if PayPal had even raised a finger during the investigation )?
Any help is appreciated.
Anthony
Corey said...
Unfortunately, I doubt it. This is one of the other problems using an Internet Payment Service Provider (IPSP). There are already a lot of a number of organizations involved in a credit card transaction. Adding another company can sometimes only cause more problems. Chargebacks are difficult enough to fight and adding the other company can make it near impossible.