Quote:
Originally posted by Cal
I will tell you that based on US merchant history dating back 4 years and working with 4 different banks/services, there is little to nothing you can do to dispute the majority of customer chargebacks. Sometimes we get checks in the mail for the funds, but our CB ratios are already messed up at that point, so it's little consolation.
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I will second this without hesitation (and I don't go through Humbolt). Even for internet retail where a product is shipped, we're fucked. As Cal mentioned, we can compile a 10 page essay with photos and fingerprints of the customer... but without a signature, the chargback stands. It's gotten to the point where funds in our bank simply drop, we get a letter about it a few days later, and I file it without wasting anymore time than I have to.
The last time I tried to dispute/reverse a chargeback, the customer had complained he never ordered. About 2 weeks later we got another letter from the issuing bank stating he never received his goods. So now we had a customer who didn't receive the goods which he never ordered. Faxing back these two conflicting stories (in writing!), I thought we might have a small chance. Nope.... whammy! The chargeback sitll stood.
A simple PIN number would fix this situation. I can understand a customer not wanting to give out their regular PIN number (I wouldn't)... so a new PIN just for internet transactions would suffice. I know they have the CVV2 crap, but that's still printed on the card itself. I'm thinking a 5 digit IPIN here or something. Have it pass directly through a VISA server which simply comes back with 'pass' or 'fail' -- kinda like AVS but, again, using info that's harder to mine like a PIN.
Anyway, the solutions are there but the banks need to implement them. Otherwise, this game of "easy chargebacks" combined with "the merchant foots all bills" is going to reach critical mass. It's just a matter of time before consumers find out how easily they can chargeback... then, just like Napster, even people who are generally honest will be tempted to indulge. Fuck, I'd like a new HDTV... I'm tempted!
