User Power
Value/Post Ratio
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- Apr 17, 2014
- 1,039
- 5,154
- 35
Literally all you can do is reply to each and every chargeback you receive. Send all the pertinent info and hope that the credit card company sides in your favor. It sucks! The online chargeback system needs to be redone as I lose far more money to people with friendly fraud than I do actual scammers.
The main issue is credit card companies care more about their customers than they do about the truth or whether they take money from merchants. The only way the issue would ever get fixed is if huge merchants (Amazon, Walmart, etc.) can get the CC companies to apply a better system. IMO filing a chargeback should be a two step process
1. You contact the credit card company who then calls the merchant and sets up a time to do a three way call while the merchant gives pertinent information (item that was ordered, date and time of the order, shipping addresses, ip address the order was made from, email address on the order etc.) Having this simple step would eliminate the honest mistake of people not remembering the company name when it shows up on their statement.
2. If customer still says the charge is not them then it goes to 3rd party mediation. Mediation is paid for by the loser of the case. The merchant would want to be sure that his info was accurate and that looking at the info he believes that the charge wasn't fraudulent before he paid for the mediator. The customer would most likely either drop the case if friendly fraud or if real fraud would go through with mediation. They have mediation now but it requires far more info than any online seller would have (requires signature confirmation on the order which is not cost effective to ship all items with just to stop the friendly fraud unless the item is worth hundreds.) Currenty the mediation cost is also astronomically high so it isn't worth it to take a chargeback to mediation as a merchant.
The main issue is credit card companies care more about their customers than they do about the truth or whether they take money from merchants. The only way the issue would ever get fixed is if huge merchants (Amazon, Walmart, etc.) can get the CC companies to apply a better system. IMO filing a chargeback should be a two step process
1. You contact the credit card company who then calls the merchant and sets up a time to do a three way call while the merchant gives pertinent information (item that was ordered, date and time of the order, shipping addresses, ip address the order was made from, email address on the order etc.) Having this simple step would eliminate the honest mistake of people not remembering the company name when it shows up on their statement.
2. If customer still says the charge is not them then it goes to 3rd party mediation. Mediation is paid for by the loser of the case. The merchant would want to be sure that his info was accurate and that looking at the info he believes that the charge wasn't fraudulent before he paid for the mediator. The customer would most likely either drop the case if friendly fraud or if real fraud would go through with mediation. They have mediation now but it requires far more info than any online seller would have (requires signature confirmation on the order which is not cost effective to ship all items with just to stop the friendly fraud unless the item is worth hundreds.) Currenty the mediation cost is also astronomically high so it isn't worth it to take a chargeback to mediation as a merchant.
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