Lyoyds TSB

[walkley]

I have a prospective client who has lost £17,000 by Lloyds TSB credit card payments clawing back money from a customer who should not have been using the credit card - customer not present. I don't have all the details yet but is this possible? Anyone had anysuccess in challenging Lloyds when this happens?

If Lloyds have accepted the credit card deal how can they renage on it some weeks later?

Please excuse spelling!!!

 

[Feldon]

I suspect the card was used fraudently, my wife banks with Lloyds and it happened to her last year, over £1000 was spent on her card online without her knowledge. It turned out the retailer had forced through the sales and had by-passed the security measures therefore they were liable for the loss. I would point out that this was quite a big company. My wife was very upset by it all and Lloyds were not very helpful making us do all the running even though the card had already been cancelled a few months before as we thought it had been mistakenly used fraudently then. All sorted now but we check our cards regularly and only use with the new verify system. Not sure how it helps your client but if they have not followed Lloyds proceedures for processing sale when client not there, ie shipping address same as card address, I think they will be liable.

 

[MrJasper1980]

Yep, I think Feldon is right, the creditcard company may be liable. They will always try to push the burdon onto the store though, they limit their exposure by relying on small traders lack of knowledge on the subject.

 

[Feldon]

MrJasper I think you misunderstood me, I think the store will be liable because they might not have followed the correct proceedures, if that is the case they will be liable. I ran my own retail business for 15 years and you were at the mercy of the credit card companies, amex was the worst.

 

[babyboy]

we had a charge back out of the blue from a customer,not for a massive amount.. Apparently the customer had returned the goods to us asking for a refund.I checked around and we had never recieved the goods back to us.

So i phoned lloydstsb cardnet,explained the situation.They were help ful asked me to write an email to the customer askinf ro proof of postage or tracking,so we could trace the parcel etc.. and also i wrote a letter to cardnet detailing the problem.

They suggested i waited a week for the customer replied.. i waited a couple of days and no reply,so i emailed again..nothing..

Eventually the upturn of ill this was that we lost the money,apparently credit card companies always go in favour of the customer and as the custome rhad "said" hed sent them back they took his word.He was not asked or obligued to proove that he had sent it.

grrrrrrrrrrrr


chris

 

[Axiar]

As a merchant, the liability is with you. That is unless the transaction was processed with 3D Secure (Verified by Visa, Mastercard Securecode) - in that case, the liability shifts to the cardholder.

Merchants should always do their best to check transactions are genuine. If a card is used fraudulently and the real cardholder contests a charge when the bill drops on their doormat, the merchant is charged back and looses the money. This sort of thing can loose the merchant some money, their business, or even their house!

In the current times, there has been a big rise in credit card fraud. The case above is probably a large amount because of a large number of transactions from the same fraudsters - once they see that they can scam the company, they keep doing it until the company realises.

The problem with relying on chargebacks as a means of detecting fraud is that they can occur months after the fraud took place. By that time you have long shipped the goods.

Jonathan.