GoFuckYourself.com - Adult Webmaster Forum - View Single Post

Carrie · 06-12-2003, 12:10 PM

If we could only get someone from Visa and MC in here who has the power to make decisions (no offense, Psyko), we could really get some work done.

One-click disputes are outrageous. Visa's prominent display of no-fault purchasing on their site is outrageous. It all tells the customer "buy what you want, you'll never have to pay for it!"
It completely puts this ALL on the back of the merchant. And the CC companies are just begging the customers to commit fraud.
Rather than making it harder for them to do so, they're making it EASIER! Whomever thought this was a good way to do business really needs to be shot in the head.

3 chargebacks in a year and you get a new card? Screw that - ONE chargeback and you get a new card. As an honest customer who has had my Visa debit card number stolen twice (without ever losing the physical card) in the past year, you'd better believe that the instant I see ONE fraudulent charge on my account, I want my card cancelled!
And so would any HONEST customer.

Make folks write letters? Hell yes - why not? "Sir all we require is a handwritten letter with your signature stating that you did not make this charge (please be sure to include the charge, date, and amount you're contesting), and we will be happy to credit the money back to your account." No forms to fill out, no disputing letters going back and forth three times - just one simple letter and it *does* get credited back. This is very easy for an HONEST customer to do and takes five minutes plus one stamp. Do you realize how much "friendly fraud" that would cut down on? Then couple it with "For your protection, sir, once we receive that letter, along with crediting your account for the amount contested we will cancel your current credit card and immediately issue you a new one so that no further fraudulent transactions can be made on your account."
Do it! Please! Honest customers would welcome this kind of protection, especially when their "visa" cards are tied directly to their bank account as mine is with my debit card. A fraudulent charge is not just a credit that I can take my time paying back - it's immediately money out of my pocket that could mean the difference between groceries or no groceries.

Why the hell don't the cc companies see it that way? Because they have positioned themselves where they can completely wash their hands of any responsibility AND make money from it!
When fraud makes the cc companies money and makes their customers happy, you're damn right they'll do it!
The customer gets to keep what he ordered (or in the case of porn sites he got to enjoy his membership), so the customer is happy. The cc company takes the money from the merchant and gives it back to the customer, so the cc company doesn't lose anything. Then to top it off, the cc company charges the merchant a FEE for that chargeback - so the cc company MAKES money from the whole fraudulent transaction. Hot diggity look we can push it even further... if we get a bunch of these fees then we can start levying daily fines against the merchant and make even MORE money!

They have no incentive to change things and make it harder for fraud to occur. None whatsoever - and by doing so, they'd actually be *losing* money!
You wonder why "Verified by Visa" has taken so long to come about? It's because it would cut into their damn profits, that's why.

Requiring a hand-written, signed letter and issuing a new card EACH time a transaction is supposedly "fraudulent" would wipe out friendly fraud in a matter of months. It would be SO easy to do and wouldn't even require a huge investment in new technology or serious upgrading of any systems.
They simply don't do it because they like the money they get from collecting those chargeback fees.

06-12-2003, 12:10 PM
Carrie Confirmed User Join Date: Apr 2002 Location: Virgin - nee Posts: 3,162	If we could only get someone from Visa and MC in here who has the power to make decisions (no offense, Psyko), we could really get some work done. One-click disputes are outrageous. Visa's prominent display of no-fault purchasing on their site is outrageous. It all tells the customer "buy what you want, you'll never have to pay for it!" It completely puts this ALL on the back of the merchant. And the CC companies are just begging the customers to commit fraud. Rather than making it harder for them to do so, they're making it EASIER! Whomever thought this was a good way to do business really needs to be shot in the head. 3 chargebacks in a year and you get a new card? Screw that - ONE chargeback and you get a new card. As an honest customer who has had my Visa debit card number stolen twice (without ever losing the physical card) in the past year, you'd better believe that the instant I see ONE fraudulent charge on my account, I want my card cancelled! And so would any HONEST customer. Make folks write letters? Hell yes - why not? "Sir all we require is a handwritten letter with your signature stating that you did not make this charge (please be sure to include the charge, date, and amount you're contesting), and we will be happy to credit the money back to your account." No forms to fill out, no disputing letters going back and forth three times - just one simple letter and it does get credited back. This is very easy for an HONEST customer to do and takes five minutes plus one stamp. Do you realize how much "friendly fraud" that would cut down on? Then couple it with "For your protection, sir, once we receive that letter, along with crediting your account for the amount contested we will cancel your current credit card and immediately issue you a new one so that no further fraudulent transactions can be made on your account." Do it! Please! Honest customers would welcome this kind of protection, especially when their "visa" cards are tied directly to their bank account as mine is with my debit card. A fraudulent charge is not just a credit that I can take my time paying back - it's immediately money out of my pocket that could mean the difference between groceries or no groceries. Why the hell don't the cc companies see it that way? Because they have positioned themselves where they can completely wash their hands of any responsibility AND make money from it! When fraud makes the cc companies money and makes their customers happy, you're damn right they'll do it! The customer gets to keep what he ordered (or in the case of porn sites he got to enjoy his membership), so the customer is happy. The cc company takes the money from the merchant and gives it back to the customer, so the cc company doesn't lose anything. Then to top it off, the cc company charges the merchant a FEE for that chargeback - so the cc company MAKES money from the whole fraudulent transaction. Hot diggity look we can push it even further... if we get a bunch of these fees then we can start levying daily fines against the merchant and make even MORE money! They have no incentive to change things and make it harder for fraud to occur. None whatsoever - and by doing so, they'd actually be losing money! You wonder why "Verified by Visa" has taken so long to come about? It's because it would cut into their damn profits, that's why. Requiring a hand-written, signed letter and issuing a new card EACH time a transaction is supposedly "fraudulent" would wipe out friendly fraud in a matter of months. It would be SO easy to do and wouldn't even require a huge investment in new technology or serious upgrading of any systems. They simply don't do it because they like the money they get from collecting those chargeback fees.