CNP Fraud retailer help and advice

simmo490

Hi,

I recently sold an item for £5000 through my business over the telephone. all the card details went through on the machine etc ok. even phoned the bank to make sure and recieved a varifacation code.

waited one week for the transaction to complete and the funds to clear and deliveered the item.

2 weeks later i have just had a phone call from the bank HSBC stating that this is now a fraud case and the card that was used was stolen and we are a victim of Card Not Present fraud.

We are awaiting a letter form them now to find out what happens, we have also reported this to the police.

I cant seem to find anything on the net about this, i need to know has anyone got any information if we are covered? The bank is saying we need to pay this money back?

Thanks

Cardaware

I am afraid that unless the transaction was verified by visa and you got the liability shift then you will have to pay back the money. As a merchant you suffer the loss of any fraud. 2 bits of advice. 1 if you have to pay back the money make sure there are no charges for the transaction. 2 You must without fail, fraud screen internet transactions in the future. This should pick out the fraud transactions for you and stop you losing money.

Andrew Goodwill
UK Credit card fraud Expert

simmo490

hi Andrew,

Thanks for your reply. the transaction was actually over the phone so the usuall house number and postcode details were entered in to the machine.

We got the varifacation number and also rang the bank and allowed this to clear for about a week.

Does your statement still remain the same..if so thankyou

Cardaware

sorry but you will have to pay the money back. Fraudsters will make transactions over the phone. It makes it more difficult for you to check the transaction out. Advice remains the same if you have a customer who has never traded with you before alway check them out first before sending the goods. I would report the fraud to the police station nearest to the delivery address. Dont take no for a answer. Go higher and threaten to make an official complaint if they refuse to investigate. Very little chance of getting the goods or money back but at least it will disrupt them

meer53

Cardaware wrote: »

sorry but you will have to pay the money back. Fraudsters will make transactions over the phone. It makes it more difficult for you to check the transaction out. Advice remains the same if you have a customer who has never traded with you before alway check them out first before sending the goods. I would report the fraud to the police station nearest to the delivery address. Dont take no for a answer. Go higher and threaten to make an official complaint if they refuse to investigate. Very little chance of getting the goods or money back but at least it will disrupt them

What will "disrupt" them ?

The OP has already reported this to the Police, if they're not prepared to investigate, and i can see why, the goods and the fraudster will be long gone, i can't see the point in making a complaint. It's not very often that they will involve themselves in CNP fraud these days unless they can link a delivery address to an ongoing investigation.

The OP, if they carried out the correct security procedures, making sure they were delivering to the billing address, has done everything they can. It's typical these days for fraudsters to intercept deliveries and redirect them.

There's not much chance of any refund from anyone really.

simmo490

thanks all,

i have come to terms and accepted i have lost the goods and 5k and yes we had the delivery address and believe it or not the intercepted us at the gate of the address....just not quite at the door! these guys had some balls

lesson learnt here for me