Businesses against fraud

[Bannyblanco]

Why do micro and small businesses try to reduce fraud on their business websites when they get quite a decent amount of money into their budget?

 

[dunkelh3it]

Why do micro and small businesses try to reduce fraud on their business websites when they get quite a decent amount of money into their budget?

As a result of the chargeback, the bank has the right to take the relevant amount from the account of the enterprise and return it to the card holder.
That is why businesses do not want to be both from the product they sell and their money.

 

[Bannyblanco]

As a result of the chargeback, the bank has the right to take the relevant amount from the account of the enterprise and return it to the card holder.
That is why businesses do not want to be both from the product they sell and their money.

When the product is taken away, does Tatli still have the right to withdraw money from the account?
Or how often does the bank do this?

 

[dunkelh3it]

When the product is taken away, does Tatli still have the right to withdraw money from the account?
Or how often does the bank do this?

The cardholder has a 560-day chargeback.
As soon as this right is exercised, the necessary documents are requested from the relevant enterprise.
if the documents are found insufficient
The bank takes that amount from the business account and returns it to the cardholder's bank.

 

[Bannyblanco]

The cardholder has a 560-day chargeback.
As soon as this right is exercised, the necessary documents are requested from the relevant enterprise.
if the documents are found insufficient
The bank takes that amount from the business account and returns it to the cardholder's bank.

Or as I understood the enterprise should submit documents related to the sale of the item?

 

[Lord777]

The reasons why a business is fighting fraud:
1. Penalties for chargeback assigned by the merchant. Some shops and services are ready for such charges and do not pay attention to the chargeback, since the total income covers all expenses.
2. Damaged reputation. Many do not pay attention to this fact because they have a large number of satisfied customers.
3. Proceedings with law enforcement agencies. This rarely happens, especially since there are always qualified lawyers on the staff who provide any support.

Everyone knows about fraud on the Internet, but this does not prevent crooks from mimicking and finding a new victim every time. Fortunately, most online transactions can be returned back to the card.

What is a chargeback
For Visa or MasterCard cards, chargeback is help you get money back from a fraudulent seller.
Chargeback makes it difficult for crooks on the Internet to calmly fill their pockets at the expense of deceived consumers. Financial refunds can be obtained from:

• some casinos, binary options, Forex brokers;
• banks;
• railway and airlines;
• shops and services on the Internet;
• financial pyramids and other swindlers;
• any companies, if you have transferred money from a card to a bank account.

If you paid with the physical use of a card, with a chip or magnetic stripe, a successful chargeback in Ukraine is in great doubt. Most often, banks will refuse the procedure.
If the payment was made with the input of the card number, CVC / CVV code - the system is on your side.
So, what is needed in order not to feed the dishonest business with your own money.

How a payment protest works
The procedure is not available to everyone, only to competent users who know what situations to avoid and how to act in controversial moments.
To initiate a refund, you must fulfill some conditions:

• If you pay in cash, or from card to card, or to an electronic wallet directly, forget about the chargeback.
• If more than one and a half years (540 days) have passed since the date of the transaction for Visa or MasterCard.
• Try to resolve the issue peacefully. Contact the site support service, negotiate in the messenger or chat.
• Explain your position. Attach a copy of the terms of use of the site, or an offer agreement. Records of telephone conversations with the site's technical support, screenshots of chat, messenger or e-mail correspondence - any proof of independent attempts to solve the problem is in your favor.
• If you agreed to all the terms of the site and confirmed your consent via SMS, the claim to the online store will be deemed unfounded. Read carefully what you agree to.
• Provide a document from the bank with information about the transfer of money to the account of the fraudsters.
• Correctly write a statement, indicate the reasons for canceling the transaction. The form can be obtained from the bank that issued the card, or downloaded from the chargeback service. You need a copy of the application in English, which will be sent to the head office of the international payment system (IPS). The application will contain the digital code corresponding to the operation.

Everything. In other cases, if there is a dispute with the seller, you provide evidence and the issuing bank cancels the payment. This buyer protection is a standard operation.

Characters
Chargeback is always a last resort. If the point is not in your own inattention, but in outright deception, then you have to fight.
There are five parties involved:

1. The cardholder, that is, the injured party.
2. The bank that issued the card. Next, the issuing bank.
3. Visa or MasterCard (MPS) system.
4. The legal entity to which the payer has a claim.
5. The bank in which the account is opened with the defendant. Next, the acquiring bank.

The holder requires a chargeback, writes a statement. The issuer, after verification, transfers it to the Ministry of Railways. They study the documents and ask for an acquirer. Further, there are two options for the development of events: if the acquirer agrees with the claim, a refund occurs; if you do not agree, connects the seller to the dispute.
The crooks become more inventive and, studying the chargeback, they try to formulate the rules for using the system so that the consumer cannot start a dispute: all the risks are spelled out, and the client's inattention is not a reason for processing a refund. The acquirer will sympathize with the issuer and will not be able to help in any way - not the case when "the client is always right."

Reasons to get your money back
Cheating, technical problems, system glitches - a chargeback is possible. Here are the main reasons:

• The goods were not delivered, the amount was debited from the card, the seller does not respond.
• They did not forget to write off money for the service, but they are in no hurry to provide. Unfortunately, a dishonest company can do nothing, without consequences for itself, up to 120 days. In most cases, this is four months from the date of the transaction or the moment when the service was supposed to be provided or the goods were delivered. After this period, the operation can be launched by the bank.

Some banks indicate their own chargeback dates, despite the fact that this violates the rules of the PS. The terms of initiation of the procedure are from 45 to 180 days. Read the agreement with the bank that issued the card.

• The service or product does not match the description. Or photographs.
• The money was debited without the consent of the cardholder.
• The money for the goods was written off twice.
• The seller did not provide full information, hid significant flaws, that is, deliberately misled the buyer.
• The withdrawal of funds on the bank card was successful, but the ATM did not issue them.
• They took out more money than the goods were worth.

If the situation is not resolved by the world, the owner of the site does not meet halfway, although the facts of bad faith are obvious, then contesting through the bank is the only way out.

What is a chargeback service and how to use it
There are online services that act as an intermediary between the bank and the cardholder. The service does all the operations on its own, providing the client with a report on how the business is progressing.

It happens like this:

• The user registers on the service. It is important to provide real data: name, email. Aliases will not work.
• The user explains the situation in which he finds himself.
• Provides evidence of fraud.
• The service takes care of all the worries. You can see how the process is going in your personal account in the chargeback service.

It is convenient if you do not have the time and desire to do everything yourself. And when you are afraid to lose sight of the important subtleties of the procedure.
It happens that the first time the bank does not accept the application and refuses the chargeback. This is not the end. The application must be resubmitted, it is possible to add more evidence. But it is necessary to meet the deadline specified by the bank in the refusal letter. It can be 3-4 days, or a week.
The sites dedicated to chargeback are full of comments from people who did not pay attention to the deadline for submitting a reapplication. Refunds were refused.

How a seller can minimize risks
There is another side to the coin: the fraudulent buyer. Aside from jokes, there are whole "schools" on social networks, where they teach how to cheat sellers from AliExpress, eBay. From any trading floor where there is buyer's protection. Refund is a goldmine for crooks.

How to protect an honest seller? Chargeback is not only a financial loss for an online store in the amount of the price of a product. Plus a fine for each return transaction up to 25 euros. Plus - loss of reputation.
The unfortunate truth is that there is no 100% seller protection. Customer loyalty is always higher than online sellers. This is how the system works.

The main types of fraud on the part of the buyer can be divided into two types:

1. The fraudster used someone else's card, and the owner never slept. Either he paid with his card, but insists that no, not him. He did not give his consent, and does not know who used the card without his knowledge.
   The seller can protect himself from such a scam by connecting the 3D-Secure service in VISA. MASTERCARD - MasterCard SecureCode. The meaning is the same.
   When paying for a purchase, the cardholder must verify his identity by entering an additional security code. He can receive this code by e-mail specified during registration; to a phone number via SMS; by entering the previously received permanent code, which is known only to the bank and the cardholder; using a special one-time code card or device.
   This is enough to prevent the bank from believing the fraudster. The chargeback will be denied.
2. Return due to misunderstanding. The buyer was dissatisfied, he did not imagine the service in his fantasies. Although the information provided is very clear.
   It's easier to defend yourself here. The site should have a section in which the conditions for the provision of services are clearly spelled out. The relationship with the customer is recorded in the form of a contract. The possibility or impossibility of a chargeback, at whose expense the goods are returned or exchanged, are clearly stated.
   The user must agree to the terms of service by checking the box - read, agree.
   Also, the seller must retain all evidence of the service provided. For example, a courier delivery receipt signed by the customer.
   Note to the seller. Fulfill your obligations on time and efficiently. If there is a hitch: there are no goods in stock, there is no way to deliver on time - talk to the client. As a last resort, offer to return the money. 99 people out of 100 agree to reconsider the deadlines and wait a bit. Talk and conflict is unlikely.
   Conscientious sellers - success in business. Honest buyers - fast chargebacks.
   Better yet, do not meet scammers on your way. Or to see them through and through, since the first option so far, no matter how sorry it is, looks like a fairy tale.

What is important to know if you do not want to deal with chargebacks.
Chargeback, or chargeback, is one of the most unpleasant things in a merchant-customer relationship. Usually, when it comes to chargeback, experts speak from the standpoint of protecting the interests of the customer of an online store. The buyer is dissatisfied with something - and wants to issue a chargeback.
First of all, a person contacts a bank or a trading platform, which oversees online stores in its system, in order to issue a chargeback. This process is quite troublesome and takes a lot of time from the client. But it is important to understand that the chargeback process is extremely unpleasant for the same store - it hits its pocket and reputation.

Fines and negative information - the merchant does not need them
When the customer, the owner of the card used for payment, asks his bank to cancel the transaction, the merchant receives a chargeback. The latter is a very unpleasant thing in the e-commerce process, because the merchant incurs losses, receives a negative rating, and the client remains dissatisfied and can then spread bad information about the same online store on the network.

In addition, the chargeback procedure is dangerous for an online store in that it bears all the costs of returning the money. An online store always pays a fine to the bank of about 25 dollars or euros for a chargeback. And the percentage of the transaction amount already taken by the acquirer for the whole process is not returned to the merchant.

Visa and MasterCard systems generally very strictly limit the number of chargebacks per month for online stores. If the merchant exceeds the norm, then he falls under the system of stricter verification by the bank or payment company. Usually, the result of such a verification and control system is an increase in fines for each chargeback (sometimes even up to 100 euros for each chargeback), or even the account of the same online store may be closed. In some cases, when a store accumulates a lot of chargebacks, it loses the ability to accept bank cards for payment.

Therefore, it is logical that an online store or a company that provides certain services on the network should try to minimize the number of chargebacks. Although it is believed that there is no complete protection against chargeback. The client of a bank that provides cards with which the buyer then pays is a more protected person than an online store.

Fraud protection
All chargebacks can generally be divided into two types. The first is when the store is faced with fraud on the part of the buyer (alas, this happens quite often). Here the system is as follows: a fraudster paid in an online store with someone else's card, or used a card, but after receiving, for example, the goods, he contacts the bank or even directly to the merchant - and declares that everything happened without his knowledge and consent to purchase.

True, this kind of fraud is becoming less and less - after the advent of 3D Secure technology (or Verified by VISA, or MasterCard SecureCode). Thanks to this function, the cardholder confirms that it is he who makes the payment. Either in the form of a code, or through the Internet bank login. 3D Secure adds one more authentication step for online payments, allowing merchants and banks to additionally ensure that the payment is made by the cardholder in order to protect against fraudulent transactions.

The second type of chargeback is when, indeed, the buyer is dissatisfied with something on the part of the same online store and requires a return payment: if the goods received the wrong or of poor quality, they went to the address for too long or completely disappeared in an unknown direction.
And just when talking about the second type of chargeback, the owner of an online store or a service provider via the Internet should know the following. And in fact, everything is quite elementary here.

The customer is always dear
The main and first rule for online merchants. It is always important to fulfill obligations to the client when it comes to a product, its delivery time, a particular service and any bonuses.

The same Internet merchant must constantly keep his finger on the pulse - and immediately contact the client if something went wrong (and even when there was a suspicion of a possible problem). For example, the seller suddenly realizes that he will not be able to deliver the goods on time, stipulated by the terms of the purchase, then it is extremely undesirable to keep the client in the dark - and inform him about it in a timely manner. In this case, the client will be calm (at least the seller will do everything possible for this) and will not demand a chargeback two or three days after the expiration of the delivery period.

If the owner of, for example, an online store has information that the ordered goods cannot be sent to the client at all, then it is better to contact him on time and directly - and offer him to return the money to the card, and not wait until the dissatisfied buyer demands a chargeback through the bank and write negative information about the merchant online. In general, it has been proven that when the store has normal contact with the customer, then the chargeback usually does not reach.

It is important for an Internet merchant or service provider to set up a system of communication with customers on their website so that they can always contact him, moreover, faster than with a bank. It often happens: the client does not receive what he wants and on time, turns to the same online store, waits, does not receive an answer (phones are silent, e-mail too) - and turns to the bank with a request to issue a return payment as soon as possible.

In general, a client contacting one or another online store should be very clear about who he is dealing with, to know that he will not be deceived and that all transactions will be carried out competently.

Rules for safety net
Online stores usually have a section "Terms and Policies" or "Terms and Conditions", which describes in detail the conditions under which, for example, they change the goods or return the money: so that the client is very clear, and he does not have to would have to deal with chargeback.

This section for literate online merchants usually begins like this: “All our goods have passed quality control and before shipment to customers - checked for defects. However, if the item you received is not in perfect condition, please contact us immediately. If you are not completely satisfied with your purchase, we will refund or exchange the goods within 10-14 business days from the date of receipt, provided ... ". And then the conditions follow.

As a rule, the list of conditions is not long, but it clearly spells out all the terms, rules and company policy. Usually, customers understand that the chargeback procedure and the actual refund take a lot of time, therefore, usually, it always first tries to resolve the issue with the seller of a particular product.

In turn, the store also needs to insure itself. For example, provide documents confirming the fact that the client has received a product or service in accordance with the previously declared description. It is also important through the courier who delivers the order to the client, be sure to take from the last receipt and receipt of receipt. These rules are able to save the same owner of an online store from such an unpleasant procedure as a chargeback.