We have a "customer" that has filed several chargebacks with us. We have a small start up that provides stored value cards, mobile payments, etc.
The situation is frustrating to know end. We KNOW this person is fraudulently filing a chargeback.
Scheme: Customer has his live in GF sign up for an account with us. They fund the account with his credit card and then use our pre paid debit card to make transactions. Including the payment of his annual car registration, parts for his car, Time Warner Cable bill and Netflix.
In the affadavit the customer states "neither I, nor any authorized user received any benefit or value from these charges.
Clearly he did, as we proved he registered his car with the DMV in NY state.
Our merchant bank is telling us, sorry if you don't have delivery confirmation there is nothing we can do. We do have CVV2 and AVS matches.
I am fairly certain I share this frustration with others. If someone wrongfully used his card, fine we owe it to make him whole. But when we can see the transaction information through our processor and see that he did these transactions is it frustrating.
Surely there is some sort of remedy for merchants in this situation. Please help :)