Forum Moderators: buckworks
I have now had 4 chargebacks in the last 800 transactions for a percentage of 0.5%. Is this low or high? When should I start to worry about WorldPay closing my account?
i wouldn't worry too much about termination. if your percentage of chargebacks gets too high, first thing they'll probably do is suspend settlements for a month. you'll still be able to take payments, just you won't get your money. they'll see how things go from then on. they might insist on a longer settlement period, or they might insist on a minimum retainer in your account to cover for chargebacks.
you need to look at transactions and work out why they've been charged back. use pre-authorisation (deferred payments) and check anything suspicious. if you get an RFI, send as much information as possible back and you might be able to stop the chargeback from going through.
There is NO risk to WorldPay in my case. My average transaction is about $70 but WorldPay never holds less than $30-40K since the settlement period is 4 weeks. There is no way that they wouldn't have enough money to cover any chargebacks, but I am worried that they could still cut me off if I had more than 1% chargebacks or something? I have heard horror stories of VISA and MC cutting off merchants if they went over 1% for two consecutive months.
I am already using pre-authorisation which saves a lot of money since you don't need to pay the 4.5% on the obvious fraudulent transactions. One of my problems is that there is no reasonably priced shipping where I get a signature back when the customer has signed for the order. They have to sign, it's just that I never get their signature back. Anyway, my chargebacks have all been frauds, except one which I managed to sort out. There just aren't enough fraud checks with WorldPay, I can't wait to see the new "Worldpay Alert" or whatever it is called.
One of my problems is that there is no reasonably priced shipping where I get a signature back when the customer has signed for the order.
Actually a shipping signature will help in the paperwork you submit to support a charge but it will not win the case. Old addage: Non-possesion of card. We actually had the right name, address (AVS verified) and a signed FedEx reciept with the customers signature delivered to the billing address...still lost :(.
I do not know the % but we have only had, that we let get through, two chargebacks in around three years (lots of attempts though).
Brian
What about the AVS results, have they not helped you? Or were all the frauds 'Not checked' or 'Not supported'?
WorldPay is really crap with AVS. 90% of our customers are from the US and WorldPay doesn't support AVS for the US so we never get a chance to check that. It is always "Not Supported". :(
Reflect,
Horrible to hear that you lost such an obvious case when you had all the proof of shipment. Did the customer say he hadn't taken delivery or was the complaint about the product or something? I thought that a signature would be sufficient to stop the chargeback...
Also, when you say lots of attempts do you mean that lots of RFI's that you have provided info on and then they haven't been charged back, or do you mean that you have had lot's of fraudulent orders that you have caught before shipping them?
On the case I cited he stated he never ordered the product. Upon digging though I found A) He had a 19 year old son at home that day B) His son was VERY serious with a girlfriend. I thought 1+1=2 but the gentleman said his son would NEVER do that, hmmmm. Anyway it always comes down to non possesion of card, period.
On the other attempts....
I have set our account at Auth Net to authorize only but not capture. We then manually, I know it is a pain, review each order every morning and if all AVS matches then we capture the funds and only then. Otherwise we send an email to the "customer" explaining that they need to update their address with the CC company and then email us back when completed, amazingly we rarely hear back from them ;).
Brian
