RailMan - 1:03 am on Jan 9, 2006 (gmt 0)

yes, the whole chargeback system is flawed, but it's down to you as the merchant to either prevent chargebacks occuring in the first place, or take action against cyber-shoplifters if you do get a chargeback

chargeback prevention has been well documented here before - loads and loads of detailed information, so no need to repeat it all, but i'll stick a couple of the real basics in here

use AVS, get a match, only ship the goods to the cardholder and require a signature, and chances of chargebacks are massively reduced

use cardholder authentication (3D secure / verified by visa / mastercard securecode) - the online version of chip and pin - it protects you from some forms of chargeback

and if you do get a chargeback, you know the cardholder has the goods so recover the goods or take the cardholder to court for non-payment and include the costs of the recovery action

anyone wanting more info on preventing chargebacks / recovering costs or goods in the event of a chargeback should read back through older threads - there's enough to write a big thick book

the vast majority of chargebacks are easily prevented - yet business owners find any excuse to ignore common sense or any excuse to whinge when they get a chargeback .................