Charge backs

[anandp]

I have read other threads on this but rather than hijack someone else's question, I thought I'd post one a little more relevant to my situation at the moment.

I am seeing a massive increase recently in the number of chargebacks coming through on transactions I have made through mySagePay. I run a Private Hire (read minicab but do not associate with the run-of-the-mill-cab-company-on-the-high-street) company, and often take card bookings over the phone.

Months later, the passenger files a charge back and I don't seem to have a hope in hell of fighting these. I have sent demand letters through on the off chance of scaring them into paying up but this has yet to be successful. Of the 12 I have received so far, only one may actually be a genuine fraudulent transcation, the rest seem to be fraudulent charge backs!

Help please!

 

[Dwebs-Ltd]

Surely all you need to do is stick a camera in the car and snap the customer when they enter the vehicle and make them aware of it.

Not sure if you pickup from home addresses or not; but if you do get a GPS locator fitted which logs all journeys that way you can provide proof you went to that address.

If you wanted to get fancy match up the customers picture with the GPS tracked journey.

 

[kulture]

You have an advantage over everyone else in this forum. You get to phyisically meet your customers. Thus you can get to see their actual card, and use a proper pin terminal. You will get a lot less chargebacks with that.

You can get terminals that work using mobile phone technology and thus do not need a phone line.

 

[tomsk]

Why not ask the customer as they leave your cabs to sign a small confirmation slip for the journey - tell them your accountant goes nuts at you if you don't etc.

Is your company name and the name on the credit card bill to the customer the same - I have before queried stuff and then realized that the company was the same company but the payment was process under a different name, this might cause a few of the charge backs.

 

[anandp]

Interesting points but the water gets muddied when I clear a few things up...
I run the company but don't drive myself. When card payments are made, they are made over the phone and then a driver is dispatched to the customer.

I do have my drivers take a signature but at the moment, they don't ask to see the card paid with to check signatures vs the card. Even if I do implement this check, it is almost always done at the end of the journey by which time if the customer was fraudulent, they would probably jump out of the car and run...?

 

[SFD]

Do you ever ring these people and ask them why they are making a chargeback?

 

[anandp]

Indeed I do - only once have I reached a number that is still working.

I have sent demand letters on each of the 12 occasions I have received a charge back, and only once have I received a phone call back with a promise to withdraw the claim.

 

[kulture]

Have you asked your merchant provider what checks they recommend to avoid chargebacks?

I don't see how waters get muddied, its your procedures that are not tight enough. Get your driver to ask to see the card before the journey starts and get a signature. Ask your card provider to get you manual card slip machines, (one for each of your cars) and take an imprint of the customer's card and signature before each journey. This way you can prove that you have seen the card, taken a signature and have previously done the cvv and address checks when you took the order.

 

[Shopping365Group]

We've suffered a large increase in chargebacks over the last 2 months for some big orders so it's been abit of a killer. All sent signed for to matching delivery and billing addresses so if we can't get our money after that then we never will. We have never had a genuine chargeback yet by the way.

 

[Optegris]

I don't see how waters get muddied, its your procedures that are not tight enough. Get your driver to ask to see the card before the journey starts and get a signature.

Exactly what I was going to suggest as well.

 

[cjd]

The way you're doing it is a card holder not present transaction with no fall back to Verified by Visa so you're very open to this type of fraud. It's probable that the people using your cabs are not the people making the booking - they just provide a 'service' for others. It will get about very quickly that you have no security so it will get worse.

As suggested, as a minimum you need to get the driver to check that the punter actually holds the card and make the punter aware that s/he will be asked to produce it for the driver. I suspect you'll have quite a few people hang up at that point.

 

[mit74]

Chargebacks and copyright legislation like the Ebay Vero program are becoming a nightmare for businesses. More and more people are cottoning to these scams and it's becoming a big problem. I mean what's the worst that can happen for the person? Do a chargeback and get away with it.. bonus! if not simply pay what you owe.
The vero program is a slightly different kettle of fish though but ecommerce is going t*** up because of the two.

I suspect in your line of business though many peope can't remember booking a car or have had a few to drink and a few weeks later see a statement on their bank account from a company they haven't heard of and panic.

 

[cycloneuk]

Only had 1 charge back with SagePay before i enabled 3D Secure, not a single one since. I do perform security checks on all my orders along with looking at The 3rd Man data, if it comes back high risk or looks iffy then it gets declined.