Refunds/stop Payment From Visa.mc,amex

[chuchok]

Last week I was talking with a farang that has a physical shop as well as an online one for selling Arts and Crafts.

He has been in business in CM for a number of years and told me about a problem with credit card companies that has reared it's ugly head.

In two separate instances, he has sent shipments to the USA, only to have payment reversed because the buyer was not happy with the product. This was over 6 months after delivery! He said that all you have to do is to complain to one of the CC companies and they will reverse the transaction until an agreement is reached (This can be up to a year after the transaction). There is apparently a small, hardcore of knowledgeable people in the USA that use these rules to the max and then resell the products for a healthy sum.

On both occasions he had to dramatically reduce the amount of money charged to receive any money at all. He lost money on both consignments and will now no longer accept CC payments on his web site.

I have no reason to doubt the source of this information, as both myself and friends have had good dealings with him in the past. He has always been true to his word and sells quality products at reasonable prices.

Has anybody heard of this happening before?Can the CC companies do this?

Any information would be appreciated.

[Ajarn]

The cc companies in the States do provide excellent protection for the buyer, which acts in the way you've described... Personally, I'm glad for that protection

I never really thought about those who would abuse the system, or how it could effect the 'other' little guy, the small retailer.

The question I have is, how can a merchant protect themselves? Not accepting credit cards sounds like a death sentence to the online seller.

Thanks for the education. Hope your friend can figure a better way around the problem, and I hope he'll let you know so you can tell us if he comes up with any ideas...

[chuchok]

Thanks for the reply Ajarn.

I agree it is great for the punters, but according to the vendor above he believes he was shafted.His shop is doing very well, and he now only accepts TT's etc for his online business.

To ask for money back up to a year or more after the event is a little much isn't it? Especially if there has been no correspondance before hand between the vendor and buyer to indicate a problem?

[Ajarn]

Thanks for the reply Ajarn.

I agree it is great for the punters, but according to the vendor above he believes he was shafted.His shop is doing very well, and he now only accepts TT's etc for his online business.

To ask for money back up to a year or more after the event is a little much isn't it? Especially if there has been no correspondance before hand between the vendor and buyer to indicate a problem?

<{POST_SNAPBACK}>

chuchok, I agree that the one-year deal sounds over the top in terms of time needed for a consumer to know if they have a problem... Wonder what their (cc company's) reasoning is for providing so much time? No retailer I've ever heard of offers that much time for returns. It seems to that 30 days from receipt should be more than enough time...

[cclub75]

It is 100 % correct... Buyers are very well protected.

You just to have to call your bank, with your CC statement, and say : "It is not me who made this transaction..." and ask for recredit.

At the other end of the chain... the vendor will bare the risk.... and the CC company will "chargeback" him... That as simple as that.

And I confirm : I can happen many month AFTER the transaction....

In an internet business myself a few years ago... I had also what u called "professionnals who are awares" of this situation.... And it was pain in the ass to fight them...

There is one solution : check ID of the buyer with his CC, so after you have a proof, a link between the transaction and the ID of the buyer.

Some e sites, for instance for first order, ask for copy ID. It is a real pain in the ass for "genuine" buyers though. But you have to protect yourself.

Other solution : use methods to "trace" behaviours : a customer who return and buy another products in very short delay after his first order... can be suspicious...

Too many goods for a first order etc. etc....

Last but not least, it is IMPERATIVE to integrate to your costs a certain amount of fraud, illegitimate chargeback etc... Take it in account, and increase your prices.