Being Scammed by Customers

[dakimoto]

I am going to start an online store for car parts. Im stuck on as to how the customers should pay. Im really worried about being scammed by credit card orders and ending losing money that way. What do you guys do to deal with this? Thank you.

-David

[TipPro]

Online shoplifting is a problem. Since you will be a small store at first you will have a chance to keep an eye on every order that comes through. If the order seems shady it isn't worth the risk. An order may be shady because it comes from Nigeria, Ghana, etc..., the order is for a large quantity of parts that are usually not bought in bulk, the names on the bill to and ship to address are different, and the list could go on and on. So basically just use your best judgement. If you are unsure about an order try calling the bank to verify the cc.

[natureday]

Just never ever send anything to nigeria.
If you get an order from there credit back the card.
99% likely it is fraud.- a stolen credit card.

[tim24]

Just never ever send anything to nigeria.
If you get an order from there credit back the card.
99% likely it is fraud.- a stolen credit card.

99% fraud if from nigeria, where did you get this (lol)

But doesn't the credit card company reinburst you, afterall that's what they are always advertising about.

[dakimoto]

What about people within the states or anywhere, that pay with a credit card, then when they get their statement, say that they didnt pay for that. What would happen then?

[dcomiskey]

99% fraud if from nigeria, where did you get this (lol)

But doesn't the credit card company reinburst you, afterall that's what they are always advertising about.

NO!! It's very different for online merchants. Credit card companies will NOT reimburse you for fraud, even if they approved the purchase. E-tailers need to know this. Personally, I think it's wrong that they do this if they are OKing the purchase. But, it's in your agreement with them that they have this escape clause.

[dakimoto]

So what do can I do about it? I mean these scammers arn't just from Nigeria, so theres no way to identify them from location. What can we do?

[dcomiskey]

You just have to keep an eye out for orders that don't seem right, really. When accepting CC orders, make sure you have zip code and the 3-digit card code verifications turned on. Often times, that can thwart a scammer. Also, never ever accept a check for a larger than normal order from anyone who claims they can't pay via CC.

[dakimoto]

How do i fight against "chargebacks" though? Thats what im most afraid of.

[jazzcat]

How do i fight against "chargebacks" though? Thats what im most afraid of.

Here are some hints:

1. Don't ship to P.O. Boxes;

2. Only ship to the credit card billing address (which you can verify through your CC interface)

3. Use CVV2 always.

Of course, this would pose problems for people like me, who have all their CC bills going to their PO Boxes. In this case, you could send to a P.O. Box with restricted delivery... but I'm not sure how that would work with large or heavy items.

[dakimoto]

Yea, sometimes Ill have to send a whole exhaust piping or bumpers. If i have the customers sign something upon delivery, would that be enough proof to thwart chargbacks? Or should I just use paypal on my site?