Credit card

If I have an online store on my page that sells merchandise, and someone uses a fake or stolen credit card to buy something (but I don't know about it obviously), and I send out the merchandise...what ends up happening?

 

Better use paypal, but I think if that happens, they will resend your product and you will have to return the money.

 

As soon as paypal finds out that the payment was sent from a stolen CC, they will reverse the transaction and the amount wont be credited to your account and you might lose your product if you already shipped it. Sad Thing !!

 

In the end I think you will get a chargeback from the cc-holder but the item of course has gone because the "buyer" won´t send back anything. But it´s the same with PayPal: if the item has been sent out you have lost, unfortunately!

kind regards

 

The owner of the stolen credit card will file a complaint with their bank. Bank will process a chargeback.

 

what do you guys mean by "chargeback" exactly? who's paying who?

 

Chargeback is where the buyer ask for a refund of his money. The seller will shoulder the cost.

 

During a Chargeback, the seller will need to return the money and your bank may levy a fee on you. The card holder will get his money back. Of course if you can proof that the card holder received the item (via physical delivery) then you may win the case of a chargeback. The final decision would lie with the banks.

No matter which payment processor you use, the chargeback is something out of the control of the payment processor and the banks have final say.

If you are worried, do your due diligence before delivery. Check to see if the IP matches the country, the name to the card holder name and so on. Only ship to the card holder's address.

 

eddy, when you say match the name to the card holder's name...where do I get the names in the first place?

And would you guys think it would help if I wait like 5 days before sending anything out?

For the physical delivery thing....if in fact the customer decides to want a refund and doesn't pick up the product at the post office, would the post office send it back to me eventually?

 

Well, in a typical online order form, there will be a portion for buyer's name and there is another portion for credit card details which will have a name on credit card. If the two names don't match, you need to dig further.