Urgent Help: Chargeback Pre-arbitration

[pengrus]

I operate an online store and have received the Pre-arbitration notice stating reason code 61 - Fraudulent MOTO transaction dated Dec 1.

I sent the fax in a total of 6 pages, to cardsystems solutions on Dec 3 with the following information:

1. I checked "Decline the case"
2. I provided the "proof of delivery" document that was requested.
3. The credit card cvs code matched, zip code matched and address matched in the transaction.


I was told today that they did not receive my fax until Dec 13, which clearly is not true because I sent it on Dec 3, and "United Bank Card accepted the case" on my behalf which I don't understand why they can do this without referring to my response. They charged back $877 to my bank account!

I sent an email to my merchant service for support, and they suggested me NOT pursuing this case.

<snip>

I would like to get some input from our fellow members before I respond to my merchant service company.

Thank you very much!

[edited by: lorax at 1:08 pm (utc) on Dec. 30, 2004]
[edit reason] Removed email quote [/edit]

[Corey Bryant]

Sounds like it is about time to find another processor honestly. Most processors now give you online access to help with chargeback protection.

Did they give you a reason as to why you should not persue? Usually with chargebacks, you have 5 business days to respond and with them telling you they did not get your fax until 13 Dec - sounds like they are just trying to cover themselves and not worry about it

-Corey

[pengrus]

They told me that for this type of 61 code, I will have little chance to win unless I have card imprint or concrete evidence of the transaction.

I have transaction record of cvs matched, and the delivery statement from my warehouse with UPS delivery confirmation with a signature.

What I was pissed off is they accept the case despite I sent the fax before deadline on Dec 3.

[Corey Bryant]

Yeah if they said it was fraudulent, it really is very difficult to fight. Depending on the issuing bank - an "It wasn't me" could me fraud. There is not excuse that it took them 10 days for your fax (mail yes, fax no).

If you contract with them is up, you might look around for another company that can support you better in these matters.

these days, having the AVS match & the CVV, does not matter. AVS is very archaic but unfortunately most processors still rely on it

-Corey

[pengrus]

Two issues I try to get your insights.

One, with so many online store in operation, why is it so hard to fight this kind of problem - being abused by the customer with no favorable support from issuing bank and visa?

Two, they clearly made the mistake accepting the case for me despite I faxed the documents checking "Decline the case". I want to ask them correct the mistake, I want to fight this pre-arbitration. Should I not? Looks like if the merchant service cannot reverse this, or credit me back the $877, the only option is to go to the court. Any suggestions?

[Corey Bryant]

Well there is something called Verified by Visa - which helps the "I didn't do it".

Have you tried to contact the customer also? If you have proof of delivery, you might even consider small claims court. Judge Judy? That would be great if you got on there & won. That would show consumers that merchants are fighting back.

Not too sure about the pre-arbitration or what they had in mind there? But pre usually means before and it looks like this has already happened.

-Corey

[bakedjake]

Judge Judy

Pop all over the keyboard. ROFLMAO.

[Corey Bryant]

:) True, but just think of the publicity.

-Corey

[Morocco]

"I KNOW A LIAR WHEN I SEE ONE MR. BRYANT. YOU SOLD IT, AND NOW YOUR GONNA PAY FOR IT....ALONG WITH THE CHARGEBACK FEES......GET OUT OF MY COURTROOM"

[home.primus.ca...]

[Corey Bryant]

I love it!

-Corey

[lgn1]

If you are totally 100% sure, that the customer is trying to defraud you (which is sounds like), pull his credit file.

If the credit file is good (you be surprized at the number of dishonest people that have good credit), then pursue collection action. He will probably pay up to keep his credit clean.

If the credit is bad, the chance that he will pay up is low, and probably not worth pursuing.

[abertone]

We have sent several fraudsters to collections. We don't see any money in return usually, but I sleep better at night knowing I have become an annoyance to them at least.

It is so surprising, with the size of e-commerce now, that someone has not come up with a service to go knock on peoples door where the merchandise was shipped to and demand they pay or hand back the merchandise. I know I would be their first customer!

-ABertone

[pengrus]

Could you please recommend some collection agency?

Thanks!