Avoiding Chargebacks & Fraud and defending if you do get them

Please find a “credit card authorization form” to be used whenever you think it’s warranted for extra security as for example large orders, new customers you don’t know and if the email address doesn’t match the person’s name. Also for mail order merchants beware if cardholder communication has misspellings and/or bad grammar. If they give you more than one credit card this is also a red flag.

I hate people that do identity theft and cheat merchants. Don’t forget if you are suspect of a transaction to

-make sure the avs and cvv match
-have them sign a cc auth form (attached) and provide a copy of their driver’s license and front & back of cc
-Also call the purchaser’s phone # to confirm the order. You’d be surprised that 90% of the time the phone # is phony and/or disconnected
-also call the issuing bank phone # on the back of the cc. Surprisingly the phone # usually doesn’t match the name of the issuing bank on the front of the card
-google the email address-often fraud will show up in regards to that email address
-make sure you ship to the address you did the AVS check on and get a signed proof of delivery or signature at will call.
-google the purchaser’s name, address & zip to see if it matches and if any fraud shows up.. It will usually show up and oftentimes give you business and other info besides verifying the name & address.

Also use http://www.whitepages.com/person

More below
For looking up a person by name to see if info they gave you matches

http://www.spokeo.com/ This service is free but for only $2.95 per month you can get a much more detailed report.

For looking up location of sender’s IP Adress

http://www.ip-address.org/

How to find sender’s IP Address

http://www.ip-address.org/tracker/trace-email.php

For my ticketbroker clients eTickets comprise the vast majority of chargebacks due to fraud and reneging cardholders. I advise to do Will Call whenever possible as crooks don’t want to show a picture id and sign. Plus most stolen cards are electronic and not wallet theft and they don’t have the physical drivers license, etc. If you do an eticket and its a stolen card there is unfortunately no recourse (personally I think the card issuing banks should eat the charge not the merchant) If dealing with a disgruntled cardholder doing a chargeback make sure your website has a “clickthrough” page that shows your terms and refund policy and the cardholder has to click “agree” to proceed to purchase. If there is a chargeback make sure to send a copy of that page with your reply. If the customer is coming in to pick up their order and you have already charged the card have a manual imprinter and have them sign a cc receipt. Your best chance for chargebacks is with Amex who usually side with the merchant. With MC/Visa you are at the mercy of erratic issuing bank staffing that is often inexperienced and who may make emotional decisions.