Total Web Solutions - Fraud

snowsteph

Hi
We use Total Web Solutions for our website and they process peoples payments who purchase products from it.

We recently had someone in London make fraudulant orders on the site. The first one was for £241.22 and we didn't know it was a fraud and sent the items to the person. They then started placing orders for the same items again and again. I didn't feel happy about it and thought it was odd so didn't send any more products and tried to contact the customer. No replies so know it was dodgy and contact Total Web Solutions. I wanted to know why the payments were allowed to be processed and come through to us when it was clearly fraud.
to cut a very long conversation short the basic gist is, these things happen, oh well nevermind. Nothing you can do.

So we have now had 3 order where the payment came through to us, all for £241.22 taken back off us. Luckily i spotted it after the 1st one so we only last that amount once as we sent the good out for one order only.

I tried to find out if we could get the money back, steamline who deal with the payments and total web solutions have both said no. We have to stand the loss, not their fault. I've questioned them time again saying why if we have 3D secure on our website payments and high security settings is it our fault?

In their help section on the website it says the following about 3D secure:

• You will get the benefit of a liability shift in that if a cardholder has authenticated with the clearing bank and then attempts to charge back the transaction, in the majority of cases you will not be liable for the charge back but instead the bank will be liable.


• You will also get the benefit of a liability shift on all cards that have attempted a 3-D secure transaction but have not actually been enrolled in the program. This means that even though the cardholder has not been authenticated you as the merchant will have attempted to authenticated thus shifting the liability back to the bank. After all it is not your fault that your customer has not enrolled in the 3-D Secure program.

I stated this to them but they say this doesn't apply to the fraud transactions. They then said this about the first fraud transaction:

Finally, there are times when the 3D secure system cannot be used, often due to a technical issue affecting the connection between ourselves and the bank. This, unfortunately, is the case with this payment and means that the customer can chargeback the payment. Also, it means that there is no resort with the bank in order to negate this

So this to me sounds like it was a problem between the bank and them, so why should we be liable for it?!!!

I am really unhappy about this, I'm glad we didn't send anything else out but that doesn't mean we didn't loose on the first order and as a small business we can't afford to. How they can put in writing that it was this connection failure between them but it be out responsibility I dont know.
Help!

[Deleted User]

I'd post this elsewhere, this is the re-claim bank charges forum.