Comments on: Don't be had by credit card fraud http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud Online Marketing and Industry News for spas, salons and massage therapists Mon, 06 Feb 2012 21:47:58 -0700 hourly 1 http://wordpress.org/?v=3.1.3 By: Jyoti http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud/comment-page-1#comment-22800 Jyoti Fri, 28 Mar 2008 23:03:44 +0000 http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud#comment-22800 Just a quick follow-up on the late cancellation where the lady pulled the chargeback on her card, since I'm sure some of you might be wondering. We disputed, sent in all of our evidence, and WE WON! It took a long time (we were informed at the end of August, and the funds were credited back to our account), and we received some kind of formal closure from them in December. Word to the wise: when the chargeback was initiated, we were immediately charged a $15 fee, which is actually pretty low, since these fees can hit $35 or more. Even though we won, we were NOT credited that money back. Also, it may still have hurt our chargeback ratio, which is not supposed to exceed 1% of all credit card transactions (otherwise you may be banned from having a merchant account and being able to accept credit cards), and I don't know if the fact that we won the dispute made any difference to that. But, it does go to show that you can win a chargeback even when there is no purchaser signature. Just post your policies very clearly, and in multiple places. Just a quick follow-up on the late cancellation where the lady pulled the chargeback on her card, since I'm sure some of you might be wondering. We disputed, sent in all of our evidence, and WE WON! It took a long time (we were informed at the end of August, and the funds were credited back to our account), and we received some kind of formal closure from them in December.

Word to the wise: when the chargeback was initiated, we were immediately charged a $15 fee, which is actually pretty low, since these fees can hit $35 or more. Even though we won, we were NOT credited that money back. Also, it may still have hurt our chargeback ratio, which is not supposed to exceed 1% of all credit card transactions (otherwise you may be banned from having a merchant account and being able to accept credit cards), and I don't know if the fact that we won the dispute made any difference to that. But, it does go to show that you can win a chargeback even when there is no purchaser signature. Just post your policies very clearly, and in multiple places.

]]> By: Thea http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud/comment-page-1#comment-21635 Thea Fri, 28 Sep 2007 22:48:51 +0000 http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud#comment-21635 Beware of clients wanting to make multiple spa reservations, spread over multiple days, including for their pregnant daughter. And... where they want the spa's credit card information (!!!). They explained that since we offer a great rate, they need to cancel their reservation with the other spa (or massage therapist), who charged them 5 times more the amount that A Spa For You quoted. The other spa (or massage therapist) is willing to refund the whole amount to us, and therefore this client need our CC info! When the e-mail arrived I was very aware of the possible fraud. When it unfolded by them asking our CC info, it was clear. This happened over the last week. Even though it happened before with European e-mails and well known models paying the spa back, this one started off with just making multiple reservations. Beware of clients wanting to make multiple spa reservations, spread over multiple days, including for their pregnant daughter. And… where they want the spa's credit card information (!!!). They explained that since we offer a great rate, they need to cancel their reservation with the other spa (or massage therapist), who charged them 5 times more the amount that A Spa For You quoted. The other spa (or massage therapist) is willing to refund the whole amount to us, and therefore this client need our CC info! When the e-mail arrived I was very aware of the possible fraud. When it unfolded by them asking our CC info, it was clear. This happened over the last week. Even though it happened before with European e-mails and well known models paying the spa back, this one started off with just making multiple reservations.

]]> By: ThyGuy http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud/comment-page-1#comment-21046 ThyGuy Fri, 06 Jul 2007 09:02:27 +0000 http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud#comment-21046 Always dispute the charge back, no-matter-what. You could win. Also, if you are able to locate the person who performed the charge back; send proof of purchase to the police nearest them and claim sales theft. If the police find they still have the product after performing a chargeback (Product must be returned to retailer upon performing a charge back) then they will be arrested and could face up to 10 years in prison and $50,000 in fines. Be smart, know the rules, know the laws, and those who want to rip merchants off will know fear. Always dispute the charge back, no-matter-what. You could win. Also, if you are able to locate the person who performed the charge back; send proof of purchase to the police nearest them and claim sales theft. If the police find they still have the product after performing a chargeback (Product must be returned to retailer upon performing a charge back) then they will be arrested and could face up to 10 years in prison and $50,000 in fines.

Be smart, know the rules, know the laws, and those who want to rip merchants off will know fear.

]]> By: Jyoti http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud/comment-page-1#comment-16708 Jyoti Sun, 10 Jun 2007 04:55:01 +0000 http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud#comment-16708 So, what happens in the following scenario? A lady bought a gift certificate online via our website. Three months later she calls to make the appointment. She is verbally informed of our 24-hour cancellation policy (which is on the website and she was also instructed to visit that section of the site when making the appointment), and she agreed to the policy. An hour and a half before the scheduled start time, she cancels. It was not an emergency or catastrophic situation. We explain that gift certificates are transferable but not refundable and the notice was too late to reschedule the appointment. A week later, she pulls a chargeback on her credit card, claiming "services not rendered". We don't have a signed receipt, or an actual swipe of the card. We only have the SpaBoom authorization code, a copy of the gift certificate (which states that it is "void if appointment is canceled less than 24 hours before the scheduled appt time") and a voice recording of the timestamped voice mail she left stating that she was cancelling. We submitted this evidence. What's our possible/probably outcome? Has anyone else had this happen? So, what happens in the following scenario? A lady bought a gift certificate online via our website. Three months later she calls to make the appointment. She is verbally informed of our 24-hour cancellation policy (which is on the website and she was also instructed to visit that section of the site when making the appointment), and she agreed to the policy. An hour and a half before the scheduled start time, she cancels. It was not an emergency or catastrophic situation. We explain that gift certificates are transferable but not refundable and the notice was too late to reschedule the appointment. A week later, she pulls a chargeback on her credit card, claiming "services not rendered". We don't have a signed receipt, or an actual swipe of the card. We only have the SpaBoom authorization code, a copy of the gift certificate (which states that it is "void if appointment is canceled less than 24 hours before the scheduled appt time") and a voice recording of the timestamped voice mail she left stating that she was cancelling. We submitted this evidence. What's our possible/probably outcome? Has anyone else had this happen?

]]> By: eva http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud/comment-page-1#comment-12506 eva Tue, 08 May 2007 13:46:19 +0000 http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud#comment-12506 We had a different take on the credit card fraud. We had a customer purchase a gift certificate online for several hundred dollars. The charge was approved and the certificate shipped. Over a month later, we received a chargeback notice saying that the card had been stolen. As luck would have it, the person who had bought the card called to make an appointment for her and a friend the very next day. My husband recognized the name and highlighted the "fraud" client and notified the local police. On the day of their service, the fraud client and her friend were greeted like every other normal client, allowed to change into a robe and were given their facial treatments - in order to actually show a service had been received. As they came out of their first treatments, they were greeted by the police, arrested and escorted off the premises. At the hearing some weeks later, the friend pleaded innocent and paid us for the full value of her scheduled appointments. The customer who fraudulently purchased the gift certificate never showed and was found to have been using stolen credit cards all over town. While the original card was refunded, we did get money for the services back from the court. We had a different take on the credit card fraud. We had a customer purchase a gift certificate online for several hundred dollars. The charge was approved and the certificate shipped. Over a month later, we received a chargeback notice saying that the card had been stolen. As luck would have it, the person who had bought the card called to make an appointment for her and a friend the very next day. My husband recognized the name and highlighted the "fraud" client and notified the local police. On the day of their service, the fraud client and her friend were greeted like every other normal client, allowed to change into a robe and were given their facial treatments – in order to actually show a service had been received. As they came out of their first treatments, they were greeted by the police, arrested and escorted off the premises. At the hearing some weeks later, the friend pleaded innocent and paid us for the full value of her scheduled appointments. The customer who fraudulently purchased the gift certificate never showed and was found to have been using stolen credit cards all over town. While the original card was refunded, we did get money for the services back from the court.

]]> By: Om Spa http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud/comment-page-1#comment-321 Om Spa Sat, 29 Jul 2006 15:04:39 +0000 http://www.spaboomblog.com/2006/dont-be-had-by-credit-card-fraud#comment-321 We were contacted by a gentlemen in Nigeria inquiring about $800 worth of retail lotions. Luckily we read your blog and were saved! We were contacted by a gentlemen in Nigeria inquiring about $800 worth of retail lotions. Luckily we read your blog and were saved!

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