Confirmed frauds - refund or await chargeback?

[davidjgoss87]

I have had my two first fraudulent orders the other day. Luckily, they were pretty blatant so I write to the billing addresses. Sure enough, the cardholders called to say they never placed the orders. I told them to go off and report it to their banks. I expected chargebacks straight away but it's been a week and nothing has happened.

I'm not sure what to do now. If I refund the transactions, which would seem the proper thing to do for the cardholders, do I then risk getting the chargeback once the bank is aware and having to fight to recoup that money? And if I wait for the chargeback, am I breaking the law in some way because I know the orders are bogus?

Sorry, but I have no experience in dealing with these.

Thanks

[Jenni384]

I don't know but I would suggest talking to your credit card machine provider, as they will be able to tell you their proceedures. :)

[Dwebs-Ltd]

I always refund that way you don't get charged the chargeback fee :)

Once you issue the refund its in the card processors hands should be back on the clients card within 3-5 days usually.

All though not had a single order get past our fraud detection since April.

[Chris-Bateman]

yeah i would do a refund and then blacklist that card(s) from using the facillity as chargebacks can be tricky things to deal with.

[sysops]

The problem with refunding is that a refund is not automatically linked to the original transaction, so you could refund and still end up with a chargeback.

The best option is to VOID the transaction. You can only do this on the day it's made, and if your payment provider provides the facility to do so. Protx and Worldpay do.

If you don't have the option, or leave it too long, then I would speak with the issuing bank first, before refunding.