shipping packagesQ: What is the best way for merchants to ensure that fraudulent credit card transactions are resolved in their favor?

A: The other day I received a letter in the mail from a credit card company requesting information for a fraudulent transaction which their cardholder had not authorized. It was for the purchase of a men’s skinny tie. In this particular case, my business credit card had already had a  chargeback initiated by the issuing bank, and it was up to me to provide a detailed rebuttal addressing all claims and providing documentation so that the debit against my account might be credited back.

This has not been the first time this has happened to me. In fact, it is a common occurrence for people to question charges for men’s neckties from a company name which they are not familiar with. But this was the first time a charge was identified as fraudulent.

I provided detailed information & contacted the merchant services to make sure they received my fax to them. The representative was kind enough to take a quick look at my case file. She said that unless I provided two key pieces of information, my case would not be decided in my favor.

They were (1) make sure that the billing and shipping addresses are identical and (2) make sure the card holder signs for the package delivered to them. This charge failed in both instances. The billing was in one state while the shipping was to another and since the recipient was someone other than the card holder, in my case a signature would not have made a difference.  The rep added that her understanding was that this was the rule for all credit cards as well as domestic and international destinations. Live & Learn!

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