New England Magento E-Commerce Meetup Message Board › Credit Card Payment - an issue?

Credit Card Payment - an issue?

Judy V.
user 52789062
Boston, MA
Post #: 1
I posted this on the meet-up area before I realized there was a message board. I apologize if this message gets to you more than once.

Hey Fellow Magentoers -
I had a Magento retailer tell me that he has sold some high value products through his website with a credit card as payment from the customer. The goods were shipped and then 30 days later the customer complains to the credit card company that there was a "problem" with the goods so the credit card company takes (or keeps the money) from the retailer and the customer does not return the goods.

Is this a common problem?
What steps should the retailer take?

I told him I would post it here with the hope of some insight from your experience.

Judy Vedder
Gary
user 12738808
Haverhill, MA
Post #: 3
It's called a chargeback. Welcome to the great ecommerce world where most merchants like myself work on paper thin margins and then need to see those tiny profits dissolve with chargebacks. Chargebacks are common since some online shoppers are always looking for something for nothing.

You can learn more about chargebacks reading this document at http://usa.visa.com/d...­ page 41 has all the chargeback codes.

If a person purchased an item online and your return policy is not clearly stated you will lose the chargeback. During checkout there must be a box that one needs to check off confirming they reviewed the return policy. This check box must not direct them to a different web page, instead it must be on the shopping cart checkout page.

If one has the rights to return an item (aka it falls within your return policy or if you don't have a return policy correct implemented in the checkout process) and you refuse to accept it back then they can keep the merchandise. If they document the attempted to return the goods like shipping it back and you refused to accept the delivery then they can win the chargebacks and keep the goods.

Everyone thinks selling online is so wonderful and the money just rolls in - but life is difficult as an online merchant. There are a lot of rotten people in this world and many of those have screwed every brick and mortar in their community so now they are online ripping off merchants online.

I'll be at the next Magento meetup and I will be going to OnePica's Magento event on Sept 19th in Boston. If you attend I can tell you all about chargebacks since I have been selling online since 1995.

People that develop web sites will tell you chargebacks seldom happen but this is not true.

Oh and if you win the first chargeback the card holder has the opportunity to put the chargeback in a second time. After losing many chargebacks I have learned how to win some chargebacks. Sadly there are some people shopping online that know how to win the chargeback process with certain dispute codes no matter what.

Best of luck in the learning curve of chargebacks. Don't worry if you think using Paypal will eliminate the chargeback issue you are fooling myself. Paypal seller's protection program for purchases over $250 is written in such a way that it is a battle to win as a merchant. Plus Paypal has a cap on how much they will cover under their seller's protection program.
Judy V.
user 52789062
Boston, MA
Post #: 2
Gary,
Thanks so much for taking the time to explain this process to me and the link to learn more. I plan to be at the next Magento meet-up, so I hope that we can speak more at that meeting.

I have to do some more homework to safe guard as much as possible; but you are correct when you say there are rotten people who know how to "game" the system.

Judy
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