Payment method information. (Different to usual question!)

[bluelightning2k]

Hey guys.

This is a thread about payment methods, but it's a slightly more advanced query than usual and not simply a couldn't-be-bothered-to-google question!


Basically, I buy and sell intangible goods. If a chargeback comes in I am seriously out of pocket - not just losing a sale but losing about 80% of the chargeback underwritten. It's a business threatening concern.

Currently I use PayPal and have an automated telephone verification service, and I am aware of geo-location IP techniques etc.




I want the most secure system possible. I was wondering if anyone knew of a payment processor that would completely guarantee against chargebacks even on intangible products.

Bank transfers: Are these completely, completely chargeback-proof? Does anybody know a payment processor that has an account with every major bank to eliminate the 3 day wait for non-HSBC customers? A way to harness bank transfers for instant payment from all banks and an affirmation that they are chargeback proof would be awesome.

EFT: I don't know much about this or how I could get this on my site. It sounds good though - I'd imagine lower fraud chance, lower chargebacks and also bigger customer spend? Any processors offer this as an easy service?



It occurs to me that whatever methods are used for online gambling must surely be good enough for my business also? So a 100% secure way to transfer funds must exist!

Basically I'm getting to the stage where I can either slack or really push for progress. Pushing for progress would mean setting sales targets of x hundred per week and trying hard to get these -- but the fears over payment security are stopping me from doing this, and making me turn away some massive potential orders.

 

[wood1e2]

Why not look at why you are getting so many chargebacks, then try to elminate that cause?

Build in a cost into your product to cover some elements of the chargeback.

I doubt you can move away from the chargebacks, as the service providers/credit card companys are protecting themselves.

One of my businesses, has to wait 30 days to recieve payment as the credit card compnay holds it for that long, just in case!!!

 

[bluelightning2k]

Thanks for the advice.

We are getting chargebacks because people want something for nothing. They are using stolen credit cards (occasionally) and keylogged PayPal etc accounts (often) to steal from us. It is hi-tech coarse theft.

Waiting simply isn't an option, unfortunately.


Does anybody have any advice at all? If the gambling industry can do this to a reasonable level of security, SURELY I can too - at the right cost?

 

[wood1e2]

If you know the gambling industry has little problem with chargebacks, how come you don't know how they get around it?

Still leads to the question why is your industry, your business being targetted?

Credit card companies are protecting themselves, what ever they may say to their clients. Speak to your merchant services and ask why the gambling industry has lower charge backs and can you have the same solution.

 

[Pete Williams]

I use Worldpay all transactions come through as one of four different levels.

1. Nothing, all details correct
2. Caution, some element of incorrect details - money still changes hands
3. Warning, seriously something up! - money still changes hands
4. Declined

Having this system in place allows for you to get extra details before sending goods out. They also operate a system whereby you can manually accept a payment once you have verified the transaction is real, no money changes hands until you manually accept it.

I have turned on all the security available recently as I had a spate of chargebacks costing me around £500 in goods and then £500 in lost revenue.

There is something that will eliminate chargebacks altogether, much akin to chip and pin. Verifed by Visa or Mastercard secure code. From what I understand the card issuers are not making it compulsory due to the fact that they would then be liable and not the merchant/retailer. Seems a bit unfair considering they make Billions!

 

[brandyace]

verified by visa & master card secure code have been helpful to many merchants that have had chargeback issues. It costs a few cents per trans but is frequently worth it. In addition, there are some advanced anti-fraud techniques that may be useful.

 

[UKISS]

Hi,

I understand your problems . One of our sites sells top end watches and fraud and charge backs have been a serious issue for us. However over the past 9 months we have worked hard to deal with this. Here is what we do it may help.

1. We use protx payment services, this comes with 3rd Man Transaction checking, which basically flags the transaction with a risk factor.

2. We have activated 3D secure as using this system brings in a liability shift from the retailer to banks. I don't have the full details to hand but if you want them send me a message and I will dig them out.

3. If the billing address is different to the delivery address then we ask that they fax through some further id.

4. We use 192business .com to check the electoral records etc

Unfortunately there is no charge back guarantee from anywhere, but you can take massive steps to help reduce it. We run every order through and internal procedure which includes the checks above before releasing it for dispatch. Although we still get charge backs from time to time, we can go back at the banks and prove due-diligence.

By and far the most import system you need is a payment provide that supports 3d secure, and from the looks of the industry all master card and maestro payments will be 3d secure by the end of July.

If I can help you any more drop a line.