Forums: Discussions for entrepreneurs and small business.

First, did you get the security code off the back of the card?  Most businesses now require the security code.  Second, have you talked to the credit card company and provided proof of delivery of product to the address listed? 

 

Finally, if dad refuses to pay or return product, turn the case over to the police. This type of credit card scam is illegal.   

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

Thanks everyone for the advice.  I have already gone through the dispute process with my merchant bank and the customers card company which is Visa.  Visa is standing by the customer who says it`s not his name on the order therefore not his responsiblity.  Visa does not care that the product was delivered to the customer`s billing address and handed directly to a person at that address.  My merchant bank told me this has happended before with Visa and none of their merchants have ever won.  I have already contacted both the son and the father and told them that if it was there intention not to pay they needed to return the product.  (I did not offer to pay for the return shipping)

I guess my next step will be to inform them that I will have to report the fraudulent activity to the police.  They are not in my state, do I just call their local police dept?  Or because it`s interstate does it involve a federal authority?

I`d say the acorn hasn`t fallen far from the tree and Dad isn`t stepping up and parenting.  If it was my son, I`d pay the charge and then he`d be waxing my car and mowing my lawn until it was paid off.  He wouldn`t see his friends, have his cell or drive my car during that time either. A BIG lesson would be taught.     

I don`t get why the merchant should be punished - you didn`t do anything wrong.  It`s the KID who needs the punishment (and a whack with my big ol` DUH board)

~Kim

The criminal act can be report to your local police.  It is a fraudulent financial transaction.  It can be prosecuted in either state.

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

so now you know that the name on the order must match the name on the credit card exactly. If you are using a web interface to capture orders, you can built logic into your code to ensure this is an exact match. If you are using people to process orders, then you can create processes and verification checklists to ensure that this doesn`t happen again. it sucks but al least you got off easy $100. I`ve had $3,000 orders go bad.

Hi,

I`ve got to say, I just recently went through a very similar experience as of late.

The cardholder paid via credit card through my paypal account. Then the owner of the card claimed a chargeback due to unauthorization of the purchase. Thankfully, I ship everything UPS so have the proof of purchase and delivery.

My case was handled for me by Paypal since they were the online payment processor. I won the case but was out of the funds, merchandise, and had a major headache for about half of a month.

I`d like to offer you this information so that you can reconsider how you do business online. Or at least you could perform a makeover for your policies.

Did you know that when a credit card company receives a chargeback claim, if you lose, you are subjected to a $35.00 chargeback fee on top of losing the money and merchandise from the CC company?

Did you know that when you handle a chargeback through Paypal for your credit card payment processors, Paypal will go to bat for you? They will also cover $20-25 of the chargeback fee if you lose.

The difference between a dispute and chargeback with Paypal is:

A dispute is in-house meaning Paypal has full jurisdiction over the investigation and outcome. If you are a well standing member, most times while they pull the funds until after the investigation, they will cover the cost of the order out of their own pocket if they feel you are in the right.

A chargeback is through a third party company. As mentioned earlier, Paypal does go to bat for you, present your case to the CC company, and try its best to get your money back. A chargeback may take up to 30 days of reconciliation through Paypal but isn`t that worth more than hiring an attorney to chase down these evil doers?

I know that this is a pro Paypal post. Honestly, I`ve had my bad experiences with PP as well. However, the good outweighs the bad.

Good luck in your endeavor.

Dan