Shady Shoppers Beware
Merchants Find New Ways to Fight Customer Fraud
By EMILY MALTBY
WSJ
As Sun Tints Inc. stocks its shelves this year for the holiday season, the auto accessories store is adding some extra precautions to make sure its customers pay for their purchases.
Jamon Robinson, president of the Bountiful, Utah, establishment, says that for years he's had a problem with chargebacks—where customers contest a charge on their credit card, often claiming that the item was never delivered or they never bought it. Credit card companies charge merchants a fine—typically up to $100 per chargeback—which can be costly when coupled with the lost sale and the lost product.
"One out of every 100 purchases would be a chargeback," estimates Mr. Robinson, "which would hurt for larger ticket items like navigation systems."
Mr. Robinson signed up to use BadCustomer.com, a site that acts as an intermediary for customer disputes. Business owners enter credit card numbers of those who have done a chargeback in the past, then cashiers can search the site's database to check if the card has had a chargeback at that store or surrounding stores, and choose to refuse the card. The cost of this basic service is free. Customers on the list can call BadCustomer.com to explain why they did the chargeback and have an opportunity to remove their card from the database.
(More here.)
By EMILY MALTBY
WSJ
As Sun Tints Inc. stocks its shelves this year for the holiday season, the auto accessories store is adding some extra precautions to make sure its customers pay for their purchases.
Jamon Robinson, president of the Bountiful, Utah, establishment, says that for years he's had a problem with chargebacks—where customers contest a charge on their credit card, often claiming that the item was never delivered or they never bought it. Credit card companies charge merchants a fine—typically up to $100 per chargeback—which can be costly when coupled with the lost sale and the lost product.
"One out of every 100 purchases would be a chargeback," estimates Mr. Robinson, "which would hurt for larger ticket items like navigation systems."
Mr. Robinson signed up to use BadCustomer.com, a site that acts as an intermediary for customer disputes. Business owners enter credit card numbers of those who have done a chargeback in the past, then cashiers can search the site's database to check if the card has had a chargeback at that store or surrounding stores, and choose to refuse the card. The cost of this basic service is free. Customers on the list can call BadCustomer.com to explain why they did the chargeback and have an opportunity to remove their card from the database.
(More here.)
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