Claim for fraudulent transaction

[Booboo691]

Good morning, I signed up last night, after browsing this forum for years, for members advice on how to proceed with a customer dispute.

In September last year a customer purchased and item from us for £687 and payment was made over the phone. We dispatched the following day by overnight courier.

Three months later just before Christmas we got notice from our payment provider (stripe) to say a claim was made saying the transaction was fraudulent.

We responded with order invoice and courier tracking showing signed for delivery and even a photograph taken by the courier.

Last night we received notification that the customers bank HSBC have decided in the customers favour and their decision is final.

Naturally I’m upset by this so I’m wondering if anyone can advise what we can do now to recover payment?

 

[Paul Kelly ICHYB]

Welcome and sorry to hear about the issue.

Write to the customer saying that they have 14 days to pay the funds (by transfer) otherwise you will take then to court. If no response, one more 'Letter Before Action' giving 7 days. Also report the fraud to the police and quote crime number.

If no response, small claims court.

 

[Booboo691]

Thanks Paul, sounds like a good plan.

 

[AmazonGeek]

Just one thing to be aware of...

If you take an order over the phone, you have to be wary of cases where the delivery address doesn't match the postcode/street number details. The card might be cloned and the fraudster knows the address on the account so can pass the AVC check. They then get the product sent somewhere else instead. The actual card holder knows nothing about it and later opens a claim when they see it on their account.

So I would check that the AVC details on the card transaction match the delivery address details. If they don't then the customer may be correct and it could be fraudulent.

I would also check that your terminal provider allows you to take phone orders this way. Because of the increased risk, they often prohibit transactions like this, especially with virtual terminals.

 

[Booboo691]

Just one thing to be aware of...

If you take an order over the phone, you have to be wary of cases where the delivery address doesn't match the postcode/street number details. The card might be cloned and the fraudster knows the address on the account so can pass the AVC check. They then get the product sent somewhere else instead. The actual card holder knows nothing about it and later opens a claim when they see it on their account.

So I would check that the AVC details on the card transaction match the delivery address details. If they don't then the customer may be correct and it could be fraudulent.

I would also check that your terminal provider allows you to take phone orders this way. Because of the increased risk, they often prohibit transactions like this, especially with virtual terminals.

Thanks, I did look into that today. The postcode and security number did match. I even compared the courier photo with google maps and was able to confirm the delivery address did match.

 

[AmazonGeek]

Thanks, I did look into that today. The postcode and security number did match. I even compared the courier photo with google maps and was able to confirm the delivery address did match.

You should be absolutely fine then. I would go with Paul's approach. Threaten with SCC - it sounds pretty open and shut to me

 

[MJD12]

@Booboo691 I'm curious if the bank gave you a reason for siding with the customer? I take telephone payments of similar amounts, and it's got me thinking if I need to review my processes. I've never had this happen to me but it's got me concerned. Have you changed anything since this has happened?

 

[Booboo691]

@Booboo691 I'm curious if the bank gave you a reason for siding with the customer? I take telephone payments of similar amounts, and it's got me thinking if I need to review my processes. I've never had this happen to me but it's got me concerned. Have you changed anything since this has happened?

They gave no reason at all. First time in 20 years so nothing changed here. I’m writing to the customer today giving 14 days to pay. I’ll even include a delivery photo of the goods on her path.