Forum Moderators: buckworks
Anyways, we do an authorization only (holds funds), when the card was originally used. We generally do the actual posting when the items ships.
I phoned the issuing bank, first thing this morning, to report a possible fraud. They said they would get back to me if their was a problem. They never did.
I decided to post the transaction, as our payment processor (Global Payments) does not charge a charge back fee, unless the number of charge backs are excessive, and we are well under the limit. We may only get two or three cases of fraud a year.
When I closed off, I expected the authorized cards, to
be rejected, and this would answer my question, as I presume the bank would cancel any pre approved authorizations on a stolen card.
Behold, they were both approved. I am still very suspicious, and will not ship until I get a confirmation from the bank, that the customer authorized the transaction.
I find it hard to believe that the bank would take over 12 hours to process a card cancelation or hold request, based on a possible fraud complaint.
What is your experince for time frame for the bank to
respond to the merchant on a possible stolen credit card? Is no news, good news?
Oh by the way, the issuing bank is MBNA, and I would be very nervous of having one of those cards, if they treat a fraud inquiry as a 'we will process when we get to it' type request.
The banks we deal with seem to think it's not their problem. I think once one actually said they'd put a hold on the card AND contact the customer! The one we contacted today said they'd put a "note" on the account, but at least they gave us the fraud department number to fax the details when we asked. Most refuse to take relevant details at all. Why bother? It's the merchants who end up footing the bill, not them.
My advice is to refund the cards right away. I'm surprised you posted them, chargeback fee or no. Surely the rate to process orders that size must add up?
The items I sell are not what I call mainstream merchandise, and they would have a hard time trying to sell this merchandise at 30%, black market, pawn shop, flea market or whatever.
If they are criminals, they must be stupid ones.
I will phone the issuing bank in about a week, and see if I can get an answer, and set aside an allowance for the chargeback. At least I get to use the issuing banks money for 90 days or so, as the chargeback request is processed. (I actually get the processing fee back, if the charge is reversed). Global Payments are very friendly to Merchants.
The merchandise is not going out the door until the bank gives me assuranace that they have contacted the customer with the phone number and address on file, and verified that it is a valid transaction.
Another reason for processing the transaction, I did not want the issuing bank to issue a charge back on a authorization only, and then be the one trying to recoup the money taken out in error. I have had screw ups in the past, and rather have the bank needing to take the money from me,rather than the other way around.
If they are criminals, they must be stupid ones.
People who import goods in the UK will correct me, but I think you can still get package which will accompanied (?) with demand to pay duties within X days. In which case fraudsters can choose to defraud C&E (part of Inland Revenue now) as well.
Or do couriers hold package until you pay all duties!?!?
It any case fraudsters could probably pay duties with stolen card they just used to buy your goods!
I think you can still get package which will accompanied (?) with demand to pay duties within X days.
In Spain (and I assume the UK as well) anything with a value of over €100 they keep until you pay. It would be a brave crinimal to try to pass off a stolen card with c&e!
The only thing I can think of, is that these people are doing this for kicks or revenge, and have no plans of ever picking up the parcels.
