Protecting Against Fraudulant Chargebacks

madmik

My friend is involved in a war at the moment with paypal as he sold an expensive laptop to a "customer" who later claimed he was sent an empty box

item was sent by an post registered and a signature was collected at delivery
at the guys confirmed paypal delivery address

its a new business and he hasnt a merchant account so is using paypal to accept all payments including credit cards

the problem is a loss of €1500 euro item is too much for a new business operating on really slim margins and if it happens more than once the business would be running at a loss

paypal are being as retarded as usual,they have taken the money out of his account so he is now without the product and the payment while the case is being considered

paypal staff are too arrogant to expllain whats happening annd he is really worried they are going to just find in favour of the customer as paypal usually decides in favour of the customer when its a grey area

is there anyway to protect a business fromm these kind of things happening?

hes really at his wits end because if it goes in favour of the customer and the same guy does it again (from another address/account) etc its going to look like my friend is the one whos being dishonest

niceirishfella

Paypal owe me €22, and after sending 2 emails to no avail i doubt i'll ever see it.
I'd hate to be into them for €1500.
You cant ring them as they seems to be invisible that way.

The Corinthian

Paypal are fine for small payments and volume, but if your friend genuinely is getting a business off the ground and his liability on a transaction is over a grand, he really should use another merchant account.

Cringer

Any chance the package was actually opened and the laptop taken from it?

Did your friend get postal insurance when shipping the item?

madmik

the registered post insurance willl only cover it up to the value of €320 euro

although its damn near impossible to make a claim against an posts insuarnce

they have a policy of ignoring all claims,I sold a plasma tv in september which arrived with the customer broken

after €30 euro of wasted phone calls i decided to go to court,still waiting on an outcome

R3al

It is very hard to fight chargebacks especially with several of the online payment processors, normally the benefit of the doubt goes to the consumer or purchaser, if you are selling anything online you will find that you are constantly targeted by fraudsters and scumbags looking to rip you off, unfortuantely it is the "shoplifting" of the cyber shopping world.

You have to put in place procedures to combat the fraudsters, i.e. require a landline number during purchase and always calling the customer to confirm an order to check the number is genuine, checking the IP address of the computer used to make the purchase originates in the same location as the address provided, cvv numbers match etc. After all that you will still find there are times when you are ripped off, often businesses just have to accept a certain amount of loss due to the activities of these people as one of the prices of doing business online.

matt26

Somebody I know setup an online business and got targeted by an online scam. They were told by Realex they would be held liable for all of the transactions as the merchant as it is person not present. They had gone to the Gardai fraud squad and everything as they suspected something with the transactions. The Banks and Realex would do nothing.

It is disgraceful that the merchants online are given no protection.

drunkmonkey

R3al wrote: »

You have to put in place procedures to combat the fraudsters,

i.e. require a landline number during purchase and always calling the customer to confirm an order to check the number is genuine

checking the IP address of the computer used to make the purchase originates in the same location as the address provided,

cvv numbers match etc.

After all that you will still find there are times when you are ripped off, often businesses just have to accept a certain amount of loss due to the activities of these people as one of the prices of doing business online.

good tips there...thanks...

my mates in the same boat...

Can you insure against online fruad?, OP's mate is selling laptops on line, it's a risky business...

You have seller protection if your using 3D secure from realex as far as I know, is there any way of protecting laser card transactions with any of the banks, address checks etc....

he's finding the whole we've no post codes a cop out on the seller protection so far...

when using a courier (including an post) for a delivery can you contact the post office to make sure that the ID is checked before delivery, are anpost liable if they did not deliver it to the card holder (addresse) if the accepted a fake signature? (the postman should know that Mrs O'Reilly is not from Nigera and dosen't usually sit on the wall waiting for him to come)

@OP tell your mate he can insure up to €1500 for an extra €4 and up to €2000 for an extra fiver if sending within Ireland, an post usually take about 6mts at least to pay up, you really got to hound them....