Charge backs on credit cards

[sleddings]

Several times now we have had chargebacks charged to our account from the credit card companies (Visa/M-Card/Am-Ex). We can prove that a charge was made by our receipts but because we are a self-serve wash, we don't have a signed receipt for proof. Because we can't provide a signed sales draft, the credit card companies "ding" us for these disputed charges. We have our customer service number posted at pertinent locations throughout the wash and issue refunds when they are warranted. How do we (or can we) fight these charge backs? Any ideas?

 

[pitzerwm]

Its probably not worth the hassle, but if you could prove that the owner of the card did use it, you can drag his butt into court for fraud or theft. If the same person did it more than once, I might think about it. A video would prove your case.

 

[washman9]

we have a c-store with 2/4 auto/self serv wash and this is starting to become more of a problem as we have credit card at the pumps and with the autos, self serv bays and vacs. i would appreciate any other thoughts or suggestions as to how to combat this problems. it seems the worse the economy gets the more attempts at fraud we have. thanks,

 

[coincarwash.ca]

I ban every card after if happens once. They cannot use that card again at my wash.

 

[MEP001]

I've noticed that more and more gas pumps and self-serve checkouts at grocery or hardware stores are asking for the billing ZIP code of the card. That'll probably be the next advancement in self-serve car wash credit card acceptance.

 

[soapy]

Is it just me or does it seem like AMerican express gets charge backed more than all the other cards combined. I am thinking about dropping them since they are the majority of the charge backs and the minority of card charges.

 

[Earl Weiss]

Merchants need to band together and demand every CC require a PIN which is not the billing Zip. Why, typicaly if you lose your wallet the billing zip is there with the credit cards!

Self serve devices such as washes and gas pumps are the first place thieves go to test a card because there is no face to face contact.

If you think you are dinged for wash charge backs figure yur cost of good and that'ds your actulal cost . Now think of the gas station who makes a whopping 10 cents a gallon and gets a $45, charge back for a stolen card.

 

[blurdgman]

If it's known that the credit card was stolen and it was used at your wash, who is responsible for payment, the bank or you?
I recently answered the chargeback with a note demanding that the bank was responsible because I provided the service, no answer as yet.

 

[sleddings]

Good idea. How do you ban an individual card?

 

[sleddings]

Is it just me or does it seem like AMerican express gets charge backed more than all the other cards combined. I am thinking about dropping them since they are the majority of the charge backs and the minority of card charges.

Yes it does. I successfully fought a chargeback but it wasn't easy. That only worked once and it was quite a battle.

 

[MEP001]

Why, typicaly if you lose your wallet the billing zip is there with the credit cards!

The question I have for the original poster is whether these chargebacks are due to cardholders simply disputing charges or after reporting their card stolen. The ZIP code would prevent the former since it proves the cardholder knowingly purchased something, stopping them from disputing the charge under the false claim that the merchant charged it without their knowledge.

 

[sleddings]

We've had both instances. I just spoke with merchant services and was informed that these most recent chargebacks (two of them in one day from two separate Visa cards) have been included in a "pilot program" that Visa is instituting for businesses like ours. They refer to us as "non face-to-face contact" businesses. They have covered these charges. I hope this means that they are trying to come to some resolution, be it a pin or a zip code, to prevent this from happening. If we can prove that our business provided the service--we should be paid for that service.

 

[lag]

We to have seen an increase in chragebacks. What I can do is create a fleet account using the card number as the entry mode ,then expire the fleet account. I will do this to customers when they do 2 chargebacks.

The reason always stated on the chargeback is they did not buy the service. There is going to need to be something done so we can prove they did recieve the service,I think requiring a pin for transactions ,is the first step.

I also believe the banks should weed out people who abuse the system. (We had 1 guy try to ding us 13 times) ,that was when I started to make it so these people couldnt use thier card at our locations.

I have around 35 people who are now "black listed".

 

[raisetheprice]

If it's known that the credit card was stolen and it was used at your wash, who is responsible for payment, the bank or you?
I recently answered the chargeback with a note demanding that the bank was responsible because I provided the service, no answer as yet.

We just were notified by our CC company that someone disputed 4 different washes at our location. Said their CC was stolen. CC company is trying to backcharge us. I thought the credit card companies ate it if the card was stolen and used before the CC holder noticed it was gone. It was an entire day after they noticed their card was missing that someone used their card. I'm disputing it, not my fault.

 

[Micah Savell]

You guys can cut them off or drive them off. Just remember that while you worry about one guy trying to get you, you may drive off more business. Do any of you customers have trouble reading and understanding how to operate your machines? If someone wants to get you, they will one way or another.

I am looking for ways to bring more people to our washes NOT make it harder for them to spend their money with me. In our five years in business we have done several million in credit card sales and thus far had less than $200 in charge backs. I would rather "give" away a dozen washes any day rather than risk of alienating a good customer.

 

[Ben's Car Wash]

We've had both instances. I just spoke with merchant services and was informed that these most recent chargebacks (two of them in one day from two separate Visa cards) have been included in a "pilot program" that Visa is instituting for businesses like ours. They refer to us as "non face-to-face contact" businesses. They have covered these charges. I hope this means that they are trying to come to some resolution, be it a pin or a zip code, to prevent this from happening. If we can prove that our business provided the service--we should be paid for that service.

When this happend to me in the past it was because the CC company notice that two sales for an identical amount occured within 2 hours time, making it look like a duplicate charge. I explained to them that often a customer will buy the full service wash package for one car, drive home and get a second car and order the same wash package again.... yet the sale was automatically charged back by the computers. I took several call and a lot of time to get the CC company to understand that not all retail sales will tally up to a different total and that many car washes have the same price washes (some only have one pricing point) and that some customer might bring 3 or 4 cars in 2 hours time! I lost maybe $100 before I caught on.

The other time I had a stolen card that got charged back which I fought.... and lost! However the differance in sales (average 60-100% higher than cash) in taking CC over cash more than make up for the rare loss.

 

[coincarwash.ca]

To ba an individual card I enter the credit card number as a fleet card with an expiry date of yesterday. This way the credit card is not valid anymore.

 

[Earl Weiss]

The question I have for the original poster is whether these chargebacks are due to cardholders simply disputing charges or after reporting their card stolen. The ZIP code would prevent the former since it proves the cardholder knowingly purchased something, stopping them from disputing the charge under the false claim that the merchant charged it without their knowledge.

<<<,

Thought about this. Makes no sense. This is used at terminals such as gas pumps or Self Serve Checkouts where the customer has to insert his card to make the charge. So, doing this, how does a zip code add any level of assurance?

 

[MEP001]

Thought about this. Makes no sense. This is used at terminals such as gas pumps or Self Serve Checkouts where the customer has to insert his card to make the charge. So, doing this, how does a zip code add any level of assurance?

I guess the question shoud be "What's different about car wash equipment that allows credit card companies to make charge-backs even if there was a card swiped?" If the reason I'm entering the billing ZIP code is to prevent the use of a stolen card, you're right, it's not much of a security device. If it's to prove that a cardholder knowingly purchased a service, it should prevent the chargebacks.

 

[sleddings]

You guys can cut them off or drive them off. Just remember that while you worry about one guy trying to get you, you may drive off more business. Do any of you customers have trouble reading and understanding how to operate your machines? If someone wants to get you, they will one way or another.

I am looking for ways to bring more people to our washes NOT make it harder for them to spend their money with me. In our five years in business we have done several million in credit card sales and thus far had less than $200 in charge backs. I would rather "give" away a dozen washes any day rather than risk of alienating a good customer.

Of course, our main concern is taking care of our customers, which is why we have our customer service number posted at several places at the wash. They can call us 24/7. We issue refunds on a regular basis. What we don't appreciate is the credit card company telling us that they are going to remove money from our account even though we provided a service. We feel that it is incumbent upon them to work out this issue so that "non face-to-face businesses", which is what they call us, aren't penalized for their lack of a safeguard when cards are lost or stolen.