Disputes on Credit Cards for Ecommerce Businesses. What can be done?
I’ve been strictly in Ecommerce since 2012 selling hardware and building supplies online. Over the past five years, I haven’t seen any evidence that credit card companies are helping merchants fight losses due to credit card fraud. Out of all of the fraudulent disputes we have had, I’m not sure if we have won a single dispute, and the credit card companies are definitely not on the side of the merchant.
What security measures are in place? A cvc number and zip code? Really? That’s all? I can’t easily contact the owner based on a zip code. We require a full address and phone number. The address is verified as well, but I don’t have time to send the owner mail as a way of communication when we suspect fraud. What would be a verification means and quick communication channel? A simple phone number. The credit card companies already have this information on file. Why can’t this be another verification mechanism? With services like Twilio, we as developers could build simple communication verifications in instances where suspicious transactions are suspected due to verifications failures or internal alerts. This could be a simple and effective solution.
What are our some other alternatives? Changing an industry is difficult, but if the superpowers in credit offerings don’t want to play, what do you do? In most cases the superpowers in retail aren’t looking to disrupt either, but is it time to defer from the status quo and look for other alternatives. Can we gather enough to band together as merchants and start the cryptocurrency revolution or demand better validation mechanisms?