I hate credit card fraud!
 

Monday we get a call from someone wanting a generator. They ask for a specific model, which is not our brand. We tell them we sell XXX. They say, OK and how much and how much with a transfer switch? I ask where it is going to be installed because we do installs in certain areas, not others. No installation, we'll just pick it up. I give them a price and they ask if it is in stock (we don't stock). I said it would be here on Monday. They say, OK.

Yesterday, they called back and asked for two generators. And they didn't ask for a price reduction for buying more than one. We sent them the credit card form and they send returned it with a local Houston phone number, but a credit card with an address of a small town in Oregon PO box. (Red flag)

On very close inspection of the PDF return file, the signature is an image placed into the PDF file (red flag).

I called the Post Office in Oregon. That name doesn't match with that PO box. No one with that name has a PO Box. (giant red flag).

We have an application where you punch in the first 6 digits and can figure out the bank. I called the bank and asked for the fraud department. I talked to a nice young lady and explain the whole situation. I gave the credit card number, name, phone number and address. She didn't say it, but her voice said nothing matches up. She said she would contact the card holder.

When the fraudster called back, we said the card was declined. He asked why. I said we don't know, it was simply declined.

He called back with a different credit card and said that the original one didn't go through because it didn't have enough funds available.

New credit card is from...Arkansas...

What most people don't understand, the credit card company/bank doesn't suffer. When fraud like this occurs, they reverse the charges. My little company would be out the money, not some giant faceless bank. The situation is different for "in person" versus over the phone/internet transactions. In person, where the card and ID are presented, the merchant is NOT liable.

We never actually ran the card. We did however waste a LOT OF TIME.

At least you pay enough attention to protect yourself. As someone who gets his credit card jacked about once a year, there are a lot who don't. Did you file a report with local PD? or not worth the time?

James, when my employer was hacked the hackers got tens of thousands names and SSNs. I had dozens of attempts against my credit and name. Fortunately I'm old and freezing my credit was no big deal for me, but yeah hackers and fraudsters should be burned at the stake. Good on you for your vigilance.

Could you tell them to bring the credit card and proper ID when they pick up the gererators so you could scan the card in person?

I'd think that would scare away most scammers and limit your risk.

I used to work at Sallie Mae. There was a reason we had a fraud department. It wasn't small and they kept very busy.

I think my cards have been abused by scammers 4 times in the last 8 years. I hate it even though I am not the one that loses.

I didn't know that. Thank you.

Seems the CC companies have enough data to prevent or recover fraud. If it's no skin off their back, that explains it.

After the second time my credit card info was stolen, I started keeping all receipts, putting them in a pile, and reconciling my statements with my receipts each month. Because of this, I was able to spot a $100 charge that my credit card company thought was legit the last time my info was stolen a few months ago. It also helps me make sure legit charges get paid.

I think thieves should be publicly punished and made an example of. Good on you for taking the steps to protect your business from fraud. IIRC you can also call the card issuer and report an attempt to defraud you (the merchant) and supply the card info.

The other one that really bothers me is skimming gift cards. Mil bought a prepaid visa card for my wife. There was an "issue" when the cashier was activating the card, so gave them a "new" one after opening the package. Turns out the card she just bought had been used for its full amount ($50) 5 days before she got the card.

The biggest problem.here is that the credit-card companies don’t give the business owner a way to validate if it’s actually the owner of the card.

I’ve had so many transactions that “didn’t feel right” but the card companies had no interest in helping me. Why? You said it, they’ll just take the money back from you.

BTDT that when I was selling g car parts James. Realized I had an $8k super charger kit on a truck already that was likely a fraud deal.


Luckily it was going to a FedEx store when we ran the address and we called the store and got them to hold the box when it got there. Called the customer and told him I would release the package once he sent me a picture of his ID matching the details on the card which of course sent him into the stratosphere cussing me out.

Cancelled the order, got the package turned around and walked away only losing shipping charges.

Selling car parts sucked because we had plenty of legit customers that liked to ship stiff straight to the mechanic so we had to dance around addresses like crazy.

Again, if you have a person with a card in front of you, the merchant is protected. Over the phone or internet sale, if it is fraud the charge will be reversed.

Update. I called the bank for the second card they used (CHASE) and it was a nightmare trying to get to the correct fraud department. And by the time you are phone transferred a few times, the phone call quality degrades. The last person I spoke to we could barely understand each other.

Not always. I recently had a charge reversed because the person told the CC company that he did not make the purchase. He was in my store with the card and signed the receipt. I called the CC provider and told them I have him on film making the purchase. Their answer was "it is only a $10 charge why are you so bothered by it". I said if it is "only $10 " why do'nt you just pay it. They said they were finding in his favor and that is it.

Yep. More often than not, the merchant is stuck with the fraud.

When I ran a bike shop we had a guy come in, buy a bike and scribble his name. Later, he denied to the credit card he bought the bike. Said someone else must have done it. It didn't match his signature. Card company stuck us with the bill.

I used to work at Amex and dealt with people every day who ran up six or seven figures a month, every month. But I never understood why a merchant would accept a credit card for a large ticket item from someone they didn't know personally. The risk is just too great. And, with Amex, the cardholder is really king.

We rarely accept cards. We have the merchant account mostly for certain government purchases with p-cards. We do accept payment for some of our installed solar energy systems. We rarely sell just parts.

Everything seemed fine until they doubled the order and then told us they didn't want installation, just the parts. And as soon as the card info came in, with out of state information, it was pretty obvious there were issues. And I decided to "decline" the card and then called the card issuer.

I had a scammer from Houston contact me about a gun I have on Armslist. He was fine with full price, so I was willing ship. He emailed me a scan of his TX CCW and his local FFL. Then came the email about the bank erroneously writing the cashier's check for $3500 instead of $775, wanted me to send him the difference. Who the eff falls for this BS?

MAmex is the worst. Had a customer that bought a brake system, Admitted to ordering it, admitted to receiving it and simply stated to Amex, "I don't understand the charge".

They sided with him, of course. I don't take Amex any more.

Bottom line is, if the customer files a dispute, they will win. The small business gets the shaft. Credit card companies don't care, at all. They know they have business by the short ones. It's the consumer they care about.