Thieving Customers

[DanCF]

I had a customer who purchased 4 months of hosting, then towards the end of his subscription, he called his CC company and had a chargeback issued. We process CCs through PayPal, and as usual they surrendered our money to the CC company without seeming to have read the documentation i sent them.

 

Has anyone else had something similar happen to them? I have thought about seeking legal action, but do you think it would be worth the trouble over $125?

[ECF]

If he did a chargeback there is nothing you can do via Paypal. You will need to contact the card issuing bank and present your documentation etc.. and tell them you are going to file fraud charges against the person.

 

Depending on what counrty you are located in you may be able to contact a government authority and get them involved as well.

 

I am no lawyer, so please do not take my words as law. They are simply suggestions you may want to try.

[Jissh]

Been there done that, you'll have to consider what your time is worth before chasing after the cash, we've been stung for far more then that by one client. The best you'll get out of the vendor is them dropping the charge back fee's. The rest is between you and a lawyer.

 

Don't be too shocked if it's not the last time you get stung, remember to record all conversations, and email. You may even want to consider using FraudCall. We use it, has stopped alot of it, although don't be surprised to see the amount of completed orders drop either. Some people just don't like receiving calls.

[Hogie]

Honestly, I think there should be a site out there where people post these kind of dingback's personal info to. Something to screen against, and to hurass.

 

I haven't done something like that yet because I haven't talk to a lawyer, but I figure if they break the contract, you aren't obligated to fullfill your part of it either.

 

Forunately, I have only had 1 person charge back on me in just over a year of service, but that 1 person really did piss me off.

[kalyse]

Good thing karma exists.

[DougK94]

Knock on wood, (my head), I have been in hosting/gameserver business almost 5 years and have not had my 1st chargeback yet, nor a fraud order get past my initial checks. I have googled and telephoned a few people and advised them to contact their bank as their credit card number has been stolen......

 

Now I probably jinxed myself........

[kalyse]

I didnt mention anything about my stats for that exact reason:

 

Now I probably jinxed myself.......

[Defcon|Rich]

I'm not even going to mention how many we average per month but usually the method is about the same as Dan's guy. Use the server for the whole month then complain to the CC company.. Generally fraud isn't a big problem since we screen the orders it's just the ones that want a freebie that tend to do this..

 

In our TOS we have a stipulation on chargebacks that we charge a $35 fee for any and all returns.. This adds insult to injury when their CC company gives the $$ back then we hit them with the fees..

 

But, Get used to it Dan, It's the nature of online business. That won't be your last chargeback. You just have to do everything you can to screen the fraudsters and deal with the others where it hurts the most.. If the CC company sides with them and you know your right go get a collection agency after them.. Those guys are like pit bulls

[Scott]

I had a real big mess on my hands a little while back with one guy and about a dozen of his referrals, but all through Authnet. Most made quarterly purchases, and then about 2 weeks after their terms started to pass, I started getting chargebacks on each and every one of them.

 

Did not make me a happy camper

 

Rich, that definitely is a good idea about the service charge!

[DougK94]

From my TOS:

 

A chargeback of payment for services rendered will result in an additional charge of $150 and will be subject to collection by an authorized collection agency.

[zebgames]

My biggest chargeback was $324 for a game server paid quarterly. Charge back happened within days of the renewal date too.....

[DanCF]

Yea it genuinely blows. The problem is that the card was charged through paypal, not a regular payment gateway (that'll be changing) and PayPal is worthless when it comes to dealing with chargebacks.

 

I have thought about a collection agency Rich. Even it it cost more than what I got back, it would be satisfying to know that you made their life hell.

[integrapynoy]

I was thinking of using a collection agancy to resolve some of these chargebacks.

 

Does anyone have a recommendation of who to use?