Which card processors are best for fraud/chargebacks etc?

[ali]

Hi I want to set up an online shop, but the thought of being ripped off by people saying they haven't received goods is putting me off.

What is people's experience with loss of money through this, and what are the best ways to protect yourself? Can you put a limit on order value (both legally and practically in the software)? Can you put in a clause saying 'we reserve the right to cancel and refund an order without reason', if you think there is something dodgy? Do you send items recorded delivery to claim compensation from the post office? How much does it cost you, and what are the best payment processors?

Thanks.

[Jayne]

Can you not use one of those delivery services that make you sign when they deliver, to prove the customer have got there goods. There use to be a firm called white arrow, who delivered for Kays catalogue that did that.

Best Wishes

Jayne

[gary]

What is people's experience with loss of money through this, and what are the best ways to protect yourself?

It happens - part and parcel of being in e-commerce. Best thing to do is send everything recorded or signed for, but often that's just impractical. If you start experiencing large losses as a result, then maybe.

Can you put a limit on order value (both legally and practically in the software)?


Yes, but depends on the software you're using.


Can you put in a clause saying 'we reserve the right to cancel and refund an order without reason', if you think there is something dodgy?

Yes, in fact it would be foolish not to have that, but don't do it yourself. Pay a solicitor to look over and correct whatever you've done - it'll be worth it if anyone decides to take you on!

Do you send items recorded delivery to claim compensation from the post office?


Yes, but be aware that the maximum standard compensation is only £30 unless you buy extra insurance.

How much does it cost you, and what are the best payment processors?

There is no best payment processor. You should work out what you want and then see which one fits those requirements - everyone has different needs and there are services designed to fit most of them.

[ali]

Thanks to both of you. A solicitor told me to make up something myself, but someone else said I should see a solicitor, so I think the solicitor I spoke to was maybe trying to get out of the free half hour to new businesses! (If that makes sense!)

[Astaroth]

You need to be careful on the distance selling regulations which give consumers rights to return items within 14 days when bought by mail order/ via the internet - a solicitor will be able to give you advice on the technicalities.

You can certainly put a limit on the amount you allow customers to buy as long as you can show the rules of the limits are applied in a non-discriminatory way. If your processing side can put the limit on will depend on which service provider you use but if you are running your own site then you could reasonably easily limit modify your shopping cart system to put limits in.

You certainly want to use a courier service or a proof of delivery mailing service to cover yourself against claims of none delivery however no matter how careful you are there will always be times when you are going to lose money from potential fraud - identity theft orders or people claiming items werent in the package delivered. This is an unfortuante part of business and something you simply have to account for in your plans.

I have to agree that there isnt such a thing as the "best" service but feel it would be improper to recommend any given that my employers do run their own merchant services.

[camelot]

I Would agree that the best thing to do is use a courier service. Having been conned myself a couple of times now, i had no recourse with the card company as i couoldn't prove items were delivered.

Dave

[ali]

Thanks again. Do you think Post Office recorded for smaller items, and their parcel service with extra insurance is ok? Separate courier services seem so expensive.

Cheers

[camelot]

As long as you get a signature from the person it is addressed to, then you should'nt have a problem.
Check with your card company regarding "due dilligence" on your part.

Dave

[Julie]

We use Business Post for our deliveries (cheaper than the Post Office) and when I was exporting to America we used UPS and FedEx. You can track the whereabouts of the package online, which is very useful.

Julie