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Fraudulent transactions

R

Raj1

Member
How to manage fraudulent transactions which people pay over the phone and later on tell the bank that they have not made this payment.
Someone else has used there card.

Its almost every month and due to the terms and conditions owner has to return the miney to the bank.

Any solution
 
This actually happens quite a bit. We surveyed the pizzeria industry a few months ago, and 78% of pizzerias believe it negatively impacts their business. It’s called a chargeback, and they can occur for a bunch of reasons. The most common of which are considered “friendly fraud,” where they don’t remember making the order or don’t recognize the charge on their card. We have a whole guide about it, and how to reduce those kinds of chargebacks.

Basically, the only way to eliminate chargebacks is to only accept card-present credit card transactions with EMV chips. That means no paying over the phone, no pre-payments online. Delivery orders would need to be paid for upon delivery, with a mobile PIN pad or a system like SpeedLine Pay. Pick-up orders would need to be paid for in-store. Most restaurants end up making the risk versus reward decision based on how much the fraudulent transactions are costing them, compared to the convenience of online and phone payments.
 
We had two from the same customer on back to back days. Signature on the slip didn’t even matter. Both times the order was delivered to their home. We fought both in the ridiculously short window we had to respond. Still lost. Credit card companies never go against the cardholder. Credit card companies should be eating this loss, not the business, it wasn’t our fault.

When it comes to Speedline pay, it doesn’t make sense for us because we have to have readers for the maximum amount of drivers on staff on our busiest day. You have to have a data plan for all the readers. These were our first chargebacks in the last few years so the chargebacks aren’t a concern for us. It would be good to save money on the card not present transactions, but honestly right now 50% of the deliveries are contactless so the fraudulent charges will live on
 
And at present all of drivers not carry Eftpos terminals.

Not sure how to keep a track to proof that we delivered.
I was successful to proof only one time because i do have a little chat with customer via sms and i sent that to bank.
 
We get the short end of the stick on those.
Your processor can add security steps like cvc #, the card holders zip, I believe they can even ask for the street number.
When I get one, my POS allows me to black list the phone number. If we get an order from that phone number it requires a manager override to take the order.

Good luck
 
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