Online order declined by retailer, but not credit card.

ferf1223

So I ordered a handbag in an online sale. It's for me. It was a good deal, but it was not a mis-price and I wasn't planning on selling it on for profit. Incidentally, the bag is still available at the same price on their website at the moment, though it seems to come and go at random (wasn't there earlier today but is now).

Now that's out of the way.

I ordered it over a week ago and no tracking info was appearing on the retailer's (though the transaction does appear on my credit card statement) website so I sent an email...and this is what I got in response...

Unfortunately your order has been declined.

This is due to the fact that we have been unable to match the details you
provided with those on the public record databases which they access.

We have therefore cancelled your order and requested a refund to
your card from our finance team. Please be mindful that your card
issuer may take several days to credit the funds to your account once
the refund has been made.

We hope you will find this information helpful and apologise for any
inconvenience caused. Please let us know if we can be of further
assistance.

Now - a few things.

1) My credit card company was obviously satisfied enough with the transaction.

2) This is not an order of a controlled substance or anything requiring a prescription...what checks does an online retailer do when someone orders a handbag and their credit card company processes the transaction?

3) If a retailer does do any such 'checks' - wouldn't they be obliged to do those checks BEFORE they charge the card?

4) I am named on various bills including council tax, utilities, credit cards, etc. at our current address where we have lived for a number of years. I do not appear on the electoral roll (no voting rights).

5) I had no communication from the retailer that there was a problem until I asked for a status update.

So - oh, ye gods of consumer rights...can they actually cancel the order because I didn't pass their checks, after they charged my card.

I've tried to call their customer service number but no one ever picks up...I feel a strongly worded letter coming on but appreciate any advice.

I don't really want to name the retailer - but it's a mid-range well known accessory company.

olly300

You should name the retailer. Bad publicity can make retailers change their actions.

3under3

I work in a customer services team that processes orders placed by credit card. Any orders placed are rated as high / medium / low risk according to the details of the transaction. The company I work for loses money if a transaction turns out to be fraudulent (usually rated as high / medium risk) so in some cases we ask for extra ID / or just refund the card and advise the customer that the order has been cancelled.

It's not the best system but it's all we have to work with.

The crucial thing is to determine if they have in fact refunded your card. They should have no reason to delay.

I would keep onto them and if no joy ask your card company to do a chargeback.

ferf1223

thanks for the info...the thing is that I'm in no way a credit risk...not at all...have plenty of credit, use it, pay it off every month...not a single mark on my record, etc...so cannot work out how on earth I could be tagged as medium or high risk...and it's never happened before - and I've bought things of higher value online no problem.

No refund processed yet - but I'll keep my eyes on it for sure...now I'm mostly annoyed that they did not bother to contact me to advise me of the situation.

3under3

They do say that you are not on the public records that they have checked and you say that you are not eligible to vote. That would indicate to us a higher risk transaction, however we wouldn't reject the order just on that basis alone.

Maybe they have been hit with a high rate of fraud so they are not taking any chances. Whatever the reason, they need to get you refunded asap - especially as they have taken a week to get round to telling you. That's poor.

bap98189

ferf1223 wrote: »

1) My credit card company was obviously satisfied enough with the transaction.

Your credit card company (bank) has nothing to do with this. These checks are carried out by the retailler, usually automatically as part of the payment process. The bank will process pretty much any transaction unless the card has been reported as stolen. Seriously, most transactions will go through as long as the card number and expiry date are correct. We get them all the time where neither the CV2 nor the Cardholder Name nor pretty much anything else match. The bank is not concerned with this part of the transaction. Luckily this would be flagged as part of the fraud screening process, which is what you have fallen foul of.

2) This is not an order of a controlled substance or anything requiring a prescription...what checks does an online retailer do when someone orders a handbag and their credit card company processes the transaction?

What you are buying is not the problem here. This is the retailler trying to asses the likelihood that the transaction has come from a stolen or fraudulent credit card. Remember if a stolen card is used, it is the retailler that loses out. The bank will issue a chargeback, the retailler will have the money taken away and if the goods have been sent out then the retailler will not get them back.

The retailler usually assesses the transaction to check that the card is not stolen or being used fraudulently. There is no hard and fast method to do this but typical things checked are that the Address, Postcode, Telephone number etc. match those registered against the card. There are all sorts of other criteria that are used.

Delivery addresses are also assessed and compared to databases of known dodgy addresses. If there have been multiple cards used at that address that is seen as a possible sign of a risk as is All of this information is weighed up and used to try and assess if the transaction is dodgy. There are no hard and fast rules, ultimately it is up to the retailler to decide if they think it is worth the risk of sending out goods or refunding the money.

3) If a retailer does do any such 'checks' - wouldn't they be obliged to do those checks BEFORE they charge the card?

No, that is not the way the system works. With most systems, the card is charged as soon as the order is placed. The other checks usually take longer, anywhere between 30mins to 8 hours is normal.

4) I am named on various bills including council tax, utilities, credit cards, etc. at our current address where we have lived for a number of years. I do not appear on the electoral roll (no voting rights).

That you have bills is irrelevant as that sort of data is not accessible or checked by these sorts of systems. However, there are any number of factors that would flag a transaction up as dodgy. Multiple cards, multiple surnames, large numbers of transactions, any of these things ocurring at a single address will be flagged up. If you gave them a mobile number this is a negative thing, as is using a hotmail or similar "free" address. I'm not suggesting any one of these would get a transaction cancelled but they are all little things that add up.

5) I had no communication from the retailer that there was a problem until I asked for a status update.

Well that is poor customer service. If they didn't at least send you an Email saying the order had been cancelled then you have every right to be annoyed, but there is little more you can do if they have refunded the money.

So - oh, ye gods of consumer rights...can they actually cancel the order because I didn't pass their checks, after they charged my card.

Yes, of course they can.

ferf1223

thank you for your details reply, bap.

I hadn't considered that the retailer might lose out if the transaction was fraudulent...though I still think that if they are going to do this, then the retailer's checks should be done before the card is charged - that they take longer doesn't seem to me to be an issue...do the checks, charge the card...doing it the other way around is just a flaw in the system as I see it. Thus far no refund has been processed by my card and as the order was placed before the monthly cut off on my account, and because we pay our credit card in full each month - I'm now going to actually be paying for the bag this month, and end up with a credit on my account next month when the refund is processed.

As for the reasons you indicate might cause a red flag (I understand it was not a comprehensive list), other than using a free email address (which I use with all online retailers and have done for years), none of them apply to me...

It's just interesting to me that this one online retailer has decided that I'm a risk when no other ever has (and that they didn't even have the courtesy to let me know there was an issue). The best part to me is I had planned, once I received the bag, to evaluate if I wanted it in another colour as well...something I will now never know and while I can understand the retailer's need to protect themselves, since I don't have this problem anywhere else (including the direct competitors of this particular company) I'll just take my business elsewhere. Their loss and all that.

Ivory_Tinkler

ferf1223 wrote: »

thank you for your details reply, bap.

I hadn't considered that the retailer might lose out if the transaction was fraudulent...though I still think that if they are going to do this, then the retailer's checks should be done before the card is charged - that they take longer doesn't seem to me to be an issue...do the checks, charge the card...doing it the other way around is just a flaw in the system as I see it. Thus far no refund has been processed by my card and as the order was placed before the monthly cut off on my account, and because we pay our credit card in full each month - I'm now going to actually be paying for the bag this month, and end up with a credit on my account next month when the refund is processed.

As for the reasons you indicate might cause a red flag (I understand it was not a comprehensive list), other than using a free email address (which I use with all online retailers and have done for years), none of them apply to me...

It's just interesting to me that this one online retailer has decided that I'm a risk when no other ever has (and that they didn't even have the courtesy to let me know there was an issue). The best part to me is I had planned, once I received the bag, to evaluate if I wanted it in another colour as well...something I will now never know and while I can understand the retailer's need to protect themselves, since I don't have this problem anywhere else (including the direct competitors of this particular company) I'll just take my business elsewhere. Their loss and all that.

Firstly if you'd have received the bag, wouldn't your credit card account be of the same standing anyway? I understand your frustration and it really is poor communication from the company but their own security checks must have flagged something up about your card.

It's a difficult call on cardholder not present transactions as there is no face to face contact with the customer and no pin can be entered. The retailer loses out if a chargeback is later made (the bank automatically claw the money back from them) so this particular retailer is obviously being cautious for some reason.

Have you double checked your order confirmation just to make sure you did provide the correct billing address and you didn't type a wrong digit somewhere which could have caused a problem with the card processing? Have you been back in touch with the retailer to see if they can provide a little more information about this problem and finally, have you checked your card statement just to make sure that your card isn't been used fraudulently elsewhere?

ferf1223

Ivory_Tinkler wrote: »

Firstly if you'd have received the bag, wouldn't your credit card account be of the same standing anyway?

Have you double checked your order confirmation just to make sure you did provide the correct billing address and you didn't type a wrong digit somewhere which could have caused a problem with the card processing? Have you been back in touch with the retailer to see if they can provide a little more information about this problem and finally, have you checked your card statement just to make sure that your card isn't been used fraudulently elsewhere?

Hi - on the first point - no, I wouldn't be in the position of having paid for the bag when I never received it...I don't actually know when we'll charge to the value of the bag again - so will have effectively paid for something and basically will have the credit tied up on the card rather thanhaving the fund in my bank account.

I have checked and all my info was correct. I've not received any response to my initial reply to the retailer asking for more info on the problem, I cannot get through to them by phone (when the call is answered it's voicemail indicating that due to adverse weather conditions their are short staffed - you can leave a message, but they may not get back to you, and they suggest emailing the address I already have) and I have checked my card statement (as I do regularly) an there is no fraudulent activity on it.

the182guy

The bottom line is the retailer can cancel the order for almost any reason if it meets the T&C's that you accepted. Check what the T&C's say about when the contract is formed between you and the retailer.

Hintza

DABS did the same to me. Now they are on my black list and I will never buy from them.

The retailer doesn't need to serve you so just name and shame and never buy from them again. If they do it too often they wil be out of business.