Comments on: 7 Ways to reduce Credit Card Chargebacks http://47hats.com/2008/12/7-ways-to-reduce-credit-card-chargebacks/ Bob Walsh Tue, 07 Feb 2012 15:41:38 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: xxx http://47hats.com/2008/12/7-ways-to-reduce-credit-card-chargebacks/comment-page-1/#comment-30043 xxx Sat, 06 Dec 2008 23:11:55 +0000 http://www.47hats.com/?p=802#comment-30043 Mark: I live in Czechia, use email hosted at fastmail.fm (no, .fm is not Czech TLD, that would be .cz) and have a Polish-sounding name. I *hate* over-assuming vendors that do what you just did. Mark: I live in Czechia, use email hosted at fastmail.fm (no, .fm is not Czech TLD, that would be .cz) and have a Polish-sounding name. I *hate* over-assuming vendors that do what you just did.

]]> By: Charles Zino http://47hats.com/2008/12/7-ways-to-reduce-credit-card-chargebacks/comment-page-1/#comment-30035 Charles Zino Thu, 04 Dec 2008 14:44:09 +0000 http://www.47hats.com/?p=802#comment-30035 Hi Mark, The first scenario might be as simple as customers purchased the software, but never received the product key via e-mail (perhaps a spam filter caught it). It's possible they could have simply forgotten about their purchase, saw the charge on their statement (using online banking the card is linked to a bank account), and just assumed it was fraud. We used to see quite a bit of that before we implemented soft descriptors. Now our client's have the ability provide the name of the software title, or their company name so that it appears on the customer's billing statement. I suppose the second scenario you described could be someone that obtained credit card information, and wanted to "test" whether or not the information is valid. Perhaps they didn't activate the software for fear of there being a "phone home" mechanism during activation? Just curiously, have you challenged any of the chargebacks from the first scenario? I'd be interested to know if there is a pattern there which could be easily solved with additional information provided at the time of purchase. Thanks, Charles iPortis.com : e-commerce made easy charles@iportis.com http://www.iportis.com Hi Mark,

The first scenario might be as simple as customers purchased the software, but never received the product key via e-mail (perhaps a spam filter caught it). It’s possible they could have simply forgotten about their purchase, saw the charge on their statement (using online banking the card is linked to a bank account), and just assumed it was fraud. We used to see quite a bit of that before we implemented soft descriptors. Now our client’s have the ability provide the name of the software title, or their company name so that it appears on the customer’s billing statement.

I suppose the second scenario you described could be someone that obtained credit card information, and wanted to “test” whether or not the information is valid. Perhaps they didn’t activate the software for fear of there being a “phone home” mechanism during activation?

Just curiously, have you challenged any of the chargebacks from the first scenario? I’d be interested to know if there is a pattern there which could be easily solved with additional information provided at the time of purchase.

Thanks,

Charles

iPortis.com : e-commerce made easy
charles@iportis.com
http://www.iportis.com

]]> By: Mark http://47hats.com/2008/12/7-ways-to-reduce-credit-card-chargebacks/comment-page-1/#comment-30031 Mark Thu, 04 Dec 2008 03:46:58 +0000 http://www.47hats.com/?p=802#comment-30031 We're getting some weird stuff happening with chargebacks. We're getting purchases being on credit cards, but the software is never being activated. Week or so later, we get chargebacks on the transactions. It's been a couple a month. Not a lot. And in one case, a card holder actually emailed us to enquire about it, saying that he never bought the software. He lived in Italy. The email address was clearly not an italian persons email (TLD was not italy, username was clearly Russian or eastern European.) But the rest of the information provided for name and address all belonged to this guy. The key associated was never used to activate the software, so we invalidated the key, refunded the guy his money. I can see using a stolen card to buy stuff, buy why buy a license for our software and then never activate it. Is somebody just testing the card out to make sure it's not flagged as stolen, before they run out to their local jewelry or electronics store to stock up on the real goods? We’re getting some weird stuff happening with chargebacks. We’re getting purchases being on credit cards, but the software is never being activated. Week or so later, we get chargebacks on the transactions. It’s been a couple a month. Not a lot.

And in one case, a card holder actually emailed us to enquire about it, saying that he never bought the software. He lived in Italy. The email address was clearly not an italian persons email (TLD was not italy, username was clearly Russian or eastern European.) But the rest of the information provided for name and address all belonged to this guy. The key associated was never used to activate the software, so we invalidated the key, refunded the guy his money.

I can see using a stolen card to buy stuff, buy why buy a license for our software and then never activate it. Is somebody just testing the card out to make sure it’s not flagged as stolen, before they run out to their local jewelry or electronics store to stock up on the real goods?

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