Non-Receipt of Merchandise

[Morocco]

Visa Chargeback Reason Codes

30 - Services Not Provided or Merchandise Not Received
31 - Error in Addition
41 - Cancelled Recurring Transaction
50 - Credit Posted as Purchase
53 - Not as Described
56 - Defective Merchandise
60 - Requested Copy Illegible
61 - Fraudulent Mail/Phone Order Transaction
71 - Authorization Request Declined / Declined Authorization
72 - No Authorization / Transaction Exceeds Floor Limit
74 - Late Presentment
75 - Cardholder Does Not Recognize the Transaction
79 - Requested Transaction Information Not Received
82 - Duplicate Processing
83 - Non-Possession of Card
85 - Credit Not Processed
86 - Paid by Other Means
90 - Non-Receipt of Merchandise

MasterCard Chargeback Reason Codes

01 - Requested Transaction Data Not Received
02 - Requested Item Illegible
08 - Requested / Required Authorization Not Obtained
12 - Account Number Not on File
31 - Transaction Amount Differs
34 - Duplicate Processing
35 - Card Not Valid or Expired
37 - Fraudulent Mail/Phone Order Transaction
41 - Cancelled Recurring Transaction
42 - Late Presentment
47 - Exceeds Floor Limit, Not Authorized, and Fraudulent Transactions
50 - Credit Posted as a Debit
53 - Cardholder Dispute Defective / Not as Described
54 - Cardholder Dispute-Not Elsewhere (U.S. only)
55 - Non-Receipt of Merchandise
59 - Services Not Rendered
60 - Credit Not Processed
63 - Cardholder Does Not Recognize - Potential Fraud

These are the chargebacks(highlighted in bold) that really drive me nuts. I was wondering what each of you do in order to combat this guys, and you overall success rate?

*edited for clarification

[hfwd]

Non-receipt of merchandise can be successfully fought if you have recipient's signature.

In our experience, we only lost 1 chargeback of about $40 that we have UPS signature. It was kind of lame - even with this signature we lost since our bank didn't want to bother over a trivial amount.

[RailMan]

ALWAYS send to the cardholder's address - never send anywhere else
ALWAYS require a signature - never dump goods on the doorstep
that's all there is to it. simple.

[jsinger]

ALWAYS send to the cardholder's address - never send anywhere else
ALWAYS require a signature - never dump goods on the doorstep
that's all there is to it. simple.

Such a policy would cost us lots of valid sales. How many people buy flowers for themselves LOL

[RailMan]

>>Such a policy would cost us lots of valid sales.
>>How many people buy flowers for themselves LOL

sure there are "gift" sites where the goods MUST go to someone other than the cardholder, but most websites have no need to ship other than to the cardholder.

if you sell "gifts" like this, make extra checks on the transaction, check the phone number given matches the address given (check white pages) and that the billing address matches the address held by the card issuer (AVS). you can then contact the cardholder by phone to verify that they placed the order and you know you're speaking to the cardholder (ask them to confirm last 4 digits on card etc). if they verify it, you then ship to the delivery address - and you still make sure you get a signature!

also if you're shipping to non-cardholder's address, make sure the delivery address looks right:
miss bloggs might send flowers to mrs bloggs in the next town - that looks fine to me
mr jones may place an order for 1000 reams of paper to be delivered to jones printing ltd in the same town - looks like he's using his personal credit card to buy supplied for his business with delivery to his business premises - looks ok to me
mr smith in new york ordering 100 bunches of flowers for delivery to lagos looks kinda suspicious ........ :)

the problem with fraud is that many merchants just don't use common sense ...............

[jsinger]

"the problem with fraud is that many merchants just don't use common sense ............... "

No doubt. But, there are a surprising number of legit reasons why people ship and bill separately. That subject has come up often before:

Gifts, of course,
college students,
Large multi location businesses,
small business that pay bills from home,
people who have moved,
PO boxes,
military,
newlyweds,
travelers,
2nd homes,
(probably many, many more reasons)

Note that many of the above are among the most affluent and highly desirable customers. Maybe 15% of our customers uses separate ship/bill and we have almost no problems.

[hfwd]

How do you ship? If it's by UPS and the goods are dropped off without signature, then they're pretty good about refunding the declared value of the shipment.