What to do if someone use other people’s credit card number to make a purchase on your website?
May.31, 2009 in
Credit
ceotobe asked:
1. If someone stole other people’s credit card and make a purchase on a web site, and the victim filed a dispute with the credit card company, the website merchant will receive a chargeback. What should the merchant do to avoid this type chargeback record, especially the web site offers online services which is not tangible goods?
1. If someone stole other people’s credit card and make a purchase on a web site, and the victim filed a dispute with the credit card company, the website merchant will receive a chargeback. What should the merchant do to avoid this type chargeback record, especially the web site offers online services which is not tangible goods?
2. Even the merchant proved that this is someone else’s fraudulent transaction, will the fraudulent transaction amount counted toward the charegeback amount in the merchant’s merchant account? Who will suffer as a victim here - the merchant service bank or the merchant or the credit card issuer? It doesn’t make sense to hold the merchant responsible for the fraud since this is an online transaction and there is no way the merchant can prevent this, especially the fraudulent transaction has the correct 3-digit or 4-digit number and correct street address.
3. what should you do? report to the police and get the police to catch those people?
June 1st, 2009 at 1:00 am
Turn them into to police if called identity theft.
June 1st, 2009 at 5:43 am
The merchant can protect themselves by making sure that the name and address on the card match exactly the address the sale is going to; don’t ship to third party addresses, and make it clear on your site that you won’t. I’ve bought online before from sites that follow the above rules - no problem; a bit of a pain for gifts, but hey, it is more secure.
If you must accept third party addresses, then you might want to set up a manual verification system for those transactions.