Man today has to be like the worst day I've had in a long time. It started with me at the bank I I noticed I was $1700 short in my account, so I ask for an activity print out. When I got it I found a $1700 charge back to my credit card processing company. Well I called the card company and found out that the card was fraudulently used and that I had a $3100 charge back pending for the same reason. Well after several hours on the phone I find that I have made over $13000 in sales to stolen cards in the last month, so there are gonna be tons of charge backs coming. What’s worse is this merchandise was exported so local authorities can't do anything about it. So it looks like the cardholders are going to get their money back, the issuing banks are going to get their money back, the thieves are getting my merchandise, and I'm gonna pay for everyone else’s problems.

Has anyone else ever been through anything like this? Does anyone know if I have a defensive leg to stand on or am I just gonna have to try to make it through this and be responsible for the fraudulent card users?

Life sucks about right now, you know....

 

Go to www.clarkhoward.com for information, and give him a call. I listen to his radio show everyday on the way to work. He is known for helping the consumer from getting ripped off in many things. Hopefully he can help you out. Good Luck![img]i/expressions/face-icon-small-sad.gif[/img]

 

clark howard is the person to talk to, he says that by law you are responsible for only a small amount of that money. $50 comes to mind, maybe it's $500 , but the point being it's a little compared to $13,000. good luck

 

I feel for you !!! .. Been there done that, though not to the loss you expect to take. Our merchant account charged back 2 weeks after we shipped !! Another export problem. We no longer ship outside the lower 48 states with payment by credit card. It has hurt business some, but the fraudulent games that are going on are not worth the headache of determining a legit sale versus a fraud. Any shipments we make outside the lower 48 require payment by electronic transfer or some other "cash" means.

Good luck to you...

Dave Boyd
Ocala, FL

 

I think I'm goint to continue shipping to all 50 and probably internationally but I'm going to start requiring a minimum of the CVV2 number, possibly faxed copies of both sides of the card and an id.

I wish that people would understand how that they end up being so lucky that they only are responsible for $50 or so of fraudulent charges, that money doesn't just come from no where it is stripped from the accounts of the merchants who accepted the cards, in my case $13000 that was spent on merchandise and shipping as well as rent, phone bills, credit card processing, and other business related expenses. When you wonder why some merchants don't accept cards or charge more for their merchandise, you can understand its reasons like this the have caused the merchants to react this way. When either the cardholders use their cards carelessly or the bank lackes in security. We are responsible for their problems!

 

Ur gonna have to excuse the new guy (me) here!

Are we talking about credit card fraud OR do you run a business where there has been fraudulent credit purchases made?

Cuz someone swiped my CC# a few yrs back and went on a online shopping spree(arnd $3k in items shipped to Russia), long story short it didnt cost me a dime!

Gdluck w/ ur troubles!

 

I am a store owner who accepted stolen credit cards via my online store.

The reason you were not responsible for that shopping spree is that those charges were debited from the retailers who were unfortunate enough to get caught in the middle. Didn't cost you a dime but wrecked someone else's who was just as innocent.

I'm not saying its always the customer's fault but they should be held responsible for their cards and report them stolen immediately. Also the banks should step up to bat, I can't see how it can fall back to any customer in my instance when I have a stack of chargebacks from Bank of America, my one small store took almost a dozen stolen Bank of America cards, and only a couple from other banks in the last month and a half. Does anyone see a pattern here? What do you think happened?

 

Again, I feel for ya!

But I disagree w/ ur cardholders shld be held even partially responsible. In this computer age, credit card #'s are getting stolen every sec w/out there knowledge. My # was stolen one or two ways........either some one got a hold of the receipt at some gas station OR someone hacked into Amazon.com and retrieved my # thru them. Either way it was hardly my fault.

Gdluck!

 

My point is that some customers never report the card stolen they just report a fraudulant charge and keep going. This leaves the card number floating out there available to be used again, by an unsuspecting merchant such as myself.

 

A similar problem happened to me but , a lesser amount. The so called customers were from Indonesia. I searched on the internet for credit card fraud and there are literally hundreds of sites out there with warnings from merchants not to do business in Indonesia,or anywhere for that matter by credit card. The bad thing is that the merchant agrees to the chargeback rule when they sign up with a credit card processor. My card processor was card service international. From the perspective of the merchant there should be some kind of limited insurance that they can sell to merchants to help them recover at least the amount that is tied up in merchandise and shipping.