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Chargeback elimination

   
10:37 pm on Jul 31, 2004 (gmt 0)

10+ Year Member



Hi all,

I'm assuming most of you are eCommerce business owners. And I have a question for you all. I've developed a new technology that will make it impossible for a thief to use a stolen credit card number to purchase goods and services over the internet (or even in a real store). That means when a business receives an order from a customer (if my technology is implemented) we will guarantee that the customer is the legal owner of the credit card account.

Now, for something like this, would it be worth an increase of about 0.15% in discount fee and 8 cents in transaction fee? Or aren't chargebacks from fraud that big of a deal?

Any comments or feedback will be appreciated :)

Mounir

1:45 am on Aug 1, 2004 (gmt 0)

10+ Year Member



Oh, by the way. I'm not here to promote my product. Actually it is still not completely developed so I don't have anything to offer. I just want comments and feedback so I can improve my product.
11:41 am on Aug 1, 2004 (gmt 0)

10+ Year Member



I think your price per transaction would be too high. If the cost was cut in half it would interest me. It's great that you are developing this - all the power to you but I bet there is already a patent or pending patent on your system - this would be your only chance at success in my humble opinion. The credit card companies only need to implement a pin code system to solve this problem. Not the code that is on the credit card but a secret code that the card holder's kids or restaurant waiter cannot see. I could go on and on about the system design but it's late.
2:48 pm on Aug 1, 2004 (gmt 0)

WebmasterWorld Senior Member essex_boy is a WebmasterWorld Top Contributor of All Time 10+ Year Member



yeah sounds interesting but I need to know your exact charges.

To eliminate chargebacks would be superb many of us would then be able to drop our prices with no charge backs and still absorb your costs.

Make sure you see a lawyer to protect your intellectual copyright etc.

Only friday there was a n obituary for a guy that made a stunning inventions for shipping saved countless lives, however he forgot to patent it and never made a bean.

typical Brit.

3:31 pm on Aug 1, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The extra transaction costs would be well worthwhile for us. Afterall we have been paying 1% extra for the Worldpay guarantee.

However, I would have to be sure that your technology will not affect the conversion rate as in the case of VbV where there is a question mark.

4:19 pm on Aug 1, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



A much bigger problem amd major concern and also significantly more common IMO (than rare fraud cases), are credit card chargebacks simply due to buyers remorse and/or not liking/appreciating the product/service as much as they thought they would.

A solution to that including paying a higher discount rate as immunization against it would be very welcome! Anyone know if that is possible?

The credit card firms are so much on the consumers side they even allow the customer to KEEP the product or service and do not mandate its return or cancellation. Had that happen several times where the credit card could care less that the customer never even tried to cancel or send back the product, which is amazing!

5:59 pm on Aug 1, 2004 (gmt 0)

WebmasterWorld Senior Member essex_boy is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Yeah ive had that too, some turnip had $550 of gear said it wasnt as described - utter rubbish and they got a full refund.

No product was ever returned.

6:32 pm on Aug 1, 2004 (gmt 0)

10+ Year Member



Depends on what you're willing to protect us on. Personally I think the fees you've outlined are quite reasonable...vbv is the closest I've found to such a partial protection plan, and pricing on that is in the 10 cents per transaction range.
12:16 am on Aug 2, 2004 (gmt 0)

10+ Year Member



You can't prevent dishonest people from doing a chargeback - if they know the system.
12:28 am on Aug 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The credit card firms are so much on the consumers side they even allow the customer to KEEP the product or service and do not mandate its return or cancellation.

Sometimes though it's not the cc company that does this. I had a situation with a new monitor which required the company replace the monitor within the warranty period. They did. AND they refused to allow me to return the defective but still usable one.

Can't blame that one on BOA.

4:22 pm on Aug 2, 2004 (gmt 0)

10+ Year Member



I'm curious to hear how you are able to block chargebacks?
4:42 pm on Aug 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If you can get a couple of crews with baseball bats to fly around the world and break legs upon requet - your fees are fine.

I don't really care for the absence of chargebacks as long as legs are being broken :)

Preventive (that seems to be popular these days) batting is even better :)

6:55 pm on Aug 2, 2004 (gmt 0)

10+ Year Member



worldpay will be waste of money
I heard people signed worldpay paid hundreds of dollars and then get terminated

do not use worldpay
too expensive

7:17 pm on Aug 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member




That means when a business receives an order from a customer (if my technology is implemented) we will guarantee that the customer is the legal owner of the credit card account.

I'd like to know how this is possible.

7:41 pm on Aug 2, 2004 (gmt 0)

10+ Year Member



Thanks for all the reply. I can't tell you exactly how we're able to prevent the chargebacks until our patent application is filed. My attorneys are currently working on that part. But what I can say is that it will protect any merchant, online or offline, against stolen credit cards. In other words, if you lost your credit card and tried to use it with a merchant that accepted my payment system, that credit card would be worth nothing (even if the real owner still hadn't noticed he lost his card).

VbV is great. But not when it comes to real life merchants. My system doesn't discriminate between retail, moto, or internet.

When it comes to the charges, which was my main concern, initially it will be about 0.15% plus 8 cents above what you are paying today. However, since we can guarantee that it is not a stolen card; we are currently building a case we hope to present to the card association with the goal of lowering all transaction rates going through our system from Internet to around retail rates (which would mean around 1% drop). This won't happen from day one though. More likely a year or two out if we build a good case.

When it comes to chargeback due to customer being disappointed with the product, that is something we can't do anything about. We just make sure that the transactions comes from an authorized person.

7:52 pm on Aug 2, 2004 (gmt 0)

10+ Year Member



ecommerceprofit

I do disagree with your opinion. I could tell you how I think it should be done, but I would reveal to much of my system. So I'm going to hold of.

But a tip: Think outside the box. ;)

7:56 pm on Aug 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



...with a merchant that accepted my payment system

Good luck.

8:05 pm on Aug 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Welcome to WebmasterWorld! :)

You have your feedback and further discussion begins to sound like self-promotion to my ear. :) Please review our Terms of Service, in particular item 25 re: whisper campaigns. I'm NOT making accusations but I am going to lock the thread and prevent further discussion.

Feel free to discuss this decision further with me in stickymail if necessary.

And good luck with your idea! :)

 

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