To those of you that have been spamming this blog, and want to do it some more, everything you have ever written was deleted with the push of a button.

How many hours do you waste each day spamming blogs?

Grow up and Go Away.

He was angry at the bank for holding his funds.

In this case, the merchant was approved to process $500 per average sale.

He received and charged an order that was more than 15X the average ticket he was approved for.

The bank acted appropriately by placing a hold on the funds and requiring the merchant to show financial docs including bank statements and P&L to prove he could absorb the damage a charge back would do to his account and that he had the money to cover it.

He refused to provide the docs, calling it a ridiculous request and was wanting me to move his processing and get him approved for that high average ticket.

First of all, any approval for an average ticket over $1000 is normally going to come after a bank has reviewed your financials and other docs required to minimize their risk. They simply will not just “trust” that you can handle the chargeback if it comes. Just as the monthly volume limit comes under watch and similar docs are requested when volumes over 75K are sought, it is the same with the amount of each sale. The bigger the sale in a card not present, internet environment, the larger the risk.

Second – almost no bank will approve average tickets (we are talking internet here, not a card present merchant) of $5000 and higher because of the amount of risk associated with an order of that size. They just simply will tell you that you cannot take charges of that amount.

I have some that will, but they require full financial docs just like are required of merchants processing $250,000 or more per month.

Some merchants (one of mine in particular I am thinking of) are able to gradually ramp up single charge amounts with good history, without further holds after some initial verifications are done as long as those charges don’ t normally exceed $4000.

So, if it ever happens to you, ask yourself, “What was I approved for?” That is what the bank goes by. Merchant accounts are nothing more than an unsecured line of credit with a bank, subject to the same conditions as an other line of credit in what you can and cannot do.

Responding promptly and politely, providing requested docs, will get your funds released sooner than later. If you have sold something to a city, large organization, or government, just provide docs including purchase order and contact info so the bank can verify that they have received the order and you should get a prompt release.

I will also suggest that your AGENT is the best friend (should be) you have in this situation and they should act on your behalf to assist.

Feel free to respond or call with any questions.

Don’t become a victim of your own technology!

A couple of weeks ago a friend told me that someone she knew had their car broken into while they were at a football game.  Their car was parked on the green which was adjacent to the football stadium and specially allocated to football fans. Things stolen from the car included a garage door remote control, some money and a GPS which had been prominently mounted on the dashboard.

When the victims got home, they found that their house had been ransacked and just about everything worth anything had been stolen.

The thieves had used the GPS to guide them to the house. They then used the garage remote control to open the garage door and gain entry to the house. The thieves knew the owners were at the football game, they knew what time the game was scheduled to finish and so they knew how much time they had to clean out the house. It would appear that they had brought a truck to empty the house of its contents.

Something to consider if you have a GPS – don’t put your home address in it. Put a nearby address (like a store or gas station) so you can still find your way home if you need to, but no one else would know where you live if your GPS were stolen.

Cellular Phones…..

I never thought of this…….

This lady has now changed her habit of how she lists her names on her mobile phone after her handbag was stolen.

Her handbag, which contained her cell phone, credit card, wallet…. etc…was stolen.

20 minutes later when she called her hubby, from a pay phone telling him what had happened, hubby says “I received your text asking about our Pin number and I’ve replied a little while ago.’”

When they rushed down to the bank, the bank staff told them all the money was already withdrawn. The thief had actually used the stolen cell phone to text ‘hubby’ in the contact list and got hold of the pin number. Within 20 minutes he had withdrawn all the money from their bank account.

Lessons Learned…..

Do not disclose the relationship between you and the people in your contact list.

Avoid using names like Home, Honey, Hubby, Sweetheart, Dad, Mom, etc….

And very importantly, when sensitive info is being asked through texts, CONFIRM by calling back.

Also, when you’re being text by friends or family to meet them somewhere, be sure to call back to confirm that the message came from them. If you don’t reach them, be very careful about going places to meet ‘family and friends’ who text you.

Does your website list you as “XYZ” when you charge your customers as “ABC”?

This is one of the largest contributing causes to Merchant Chargebacks and is easily remedied.

Many of you have a second website that shares the same common merchant account through the use of an additional Terminal ID.

While this is somewhat “normal”, you need to make certain that your customers understand “who” will be charging their credit card or you may find yourself in for an unpleasant surprise.

The main reason customers charge back is that they don’t recognize the name of the company that made the charge.

This can cost both time, aggravation, and yes… MONEY!

Can you afford to have your funds for a sold order taken out of your account without notice, only to find that the buyer simply did not recognize your charge?

Take the time to insure that your website DETAILS EXACTLY how the charge will appear and also include this information in emails and customer correspondence.

EDUCATE your customer, IDENTIFY your name that you charge with, and REDUCE your expenses for unwarranted charge backs.

Your mail is here, and in it is a blue envelope from your Merchant Processor informing you that you’ve got a chargeback from a fraudulent order.

Emotions run the gamut, and you are justifiably angry that someone has stolen from you.

Here’s some tips to keep it from happening again!

1. Verify – Call the customer. Bad phone number = Red Flag
2. Verify – Email the customer. No reply = Another Red Flag
3. Zip Code Matches AVS, but not the Address = Yes, Another Red Flag
4. Billing Address is a Match, but Shipping Address is Different = Red Flag

If you have a suspect order and any of the above criteria comes into play, you need to stop and DON’T CHARGE THE CARD until you complete further verification.

In many cases the “Fraudsters” will communicate with you and try to get you to complete their order.

A good method to verify a customer you are worried about, but with otherwise good address and contact info is to charge a low, odd amount (like .76 cents) and have the “Customer” tell you the amount of the charge and in that way you know that they have access to the highest levels of the account.

Feel free to contact us at 800-996-6127 for further ways to combat fraud, verify or identify suspect orders, and to learn how to take action to apprehend those that commit fraud against you.

]]> http://processforless.com/priceless/2009/09/handling-merchant-chargebacks-for-fraud/feed/ 0 http://processforless.com/priceless/2009/09/how-not-to-build-your-business-with-twitter/ http://processforless.com/priceless/2009/09/how-not-to-build-your-business-with-twitter/#comments Mon, 14 Sep 2009 05:10:17 +0000 admin http://processforless.com/priceless/?p=54 Over the past 5 months, We’ve personally created a number of targeted Twitter accounts that now have in excess of 20,000 followers in aggregate.

We started the accounts initially to become more involved more in Social Media, and to research Twitter Automation as it related to using it as a medium to market services, information, and goods.

We needed to expand our reach, meet new people, and network with those with connections or interest in our areas of expertise.

The Economy had taken it’s toll on part of our market segment and we had to expand our sphere to gain new clients. Twitter became a must that we HAD to do right.

We wanted to leverage  followers interest through engaging content and giving direct reply to any comments or mentions the accounts might receive.  We wanted to be more than an automated account spitting out “Make Money At Home” opportunities or drone on about useless information.

We had to hit a very narrow target.

Since we started creating accounts on Twitter for Individuals and Businesses, what everyone is unanimously telling us is that their end goal is for some gain, monetary or other, but they are not on Twitter simply for the sake of Twittering.

You have to build a REAL Twitter following to expand the reach of your business.

By a REAL following, we mean Twitter accounts that follow you, with a human  reading your content from time to time, influencable, and are not just on automatic and programmed to follow you when you follow them, or by automatic follow utilities like http://www.twollo.com that can follow thousands, but YOU have to take the time to get an idea who is real and who is not.

High Follower counts mean NOTHING if no one is reading what you publish on Twitter, or if what you publish is always for the sake of selling.

Real Followers want REAL content, not a bunch of  ”get rich quick” garbage. We all have spam folders for that on our computers. Do we really have to deal with that on Twitter too?

Twitter has really cracked down on pages build solely for marketing, and perhaps that will rid them of many of the spammers that have migrated to Twitter from MySpace and Craigslist.

When the sellings starts, most Followers simply tune you out or say “Bye-Bye!

If you use Automation for your content, make sure it is targeted content that your Followers will want to read.

If you advertise on your Twitter account, make sure your ads are brief, well timed, and interesting to the niche you are following. All it takes is one or two complaints to get your account suspended.

If you send Direct Messages (DM’s) to new Followers, LOSE THE MARKETING PITCH! Tell them thanks and let that be that. Don’t start selling to someone you have never met until you have the chance to interact with them.

DO interact with your Followers. Comment on things they Tweet that interest you and RT (Re-Tweet) those posts they make that are really good. That will show your Followers that you are REAL and INTERESTED in more than your content and selling.

The human side is the key (in my opinion) to building a base of Followers that reads what you Tweet. Losing that human touch is a sure way to get Un-Followed or Blocked.

Last – Watch who you follow. If I am a serious business, interested in what you have to Tweet about,  and I see that you have Mary’s Brothel following you, I am going to wonder if all you want is warm bodies (no pun indended) or if you are serious about your niche.

Auto-following software will get those types of users, so make it a habit to go in from time to time and purge the “bad elements”.

Take the time to fine tune what you Tweet and keep in touch with the people that follow you, and show a human side to a service that has become filled with Robot accounts. The positive effects on your business or personal goals will surprise you!

Top Ten Reasons You Need A New Merchant Account Provider

1. The thought of opening your statement gives you indigestion.

2. You have to hire a PHD to read your statement.

3. Your personal rep is named “Pot Luck”.

4. Your rates creep up worse than a pair of old underwear.

5. Your agent sends you email full of spelling and grammatical errors.

6. You keep hearing what an “Extra Special” deal you have, but have never seen it.

7. You pay for customer service with your agent but have not experienced it.

8. Your agent is out of the office spending your money, not taking your calls.

9. You ask a simple E-Commerce question and hear the sound of “DUH”.

10. All the people in your Agent’s office are smarter than your Agent!

If any of this rings true…. Consider a “Real” Professional Merchant relationship.

Our rates rock, merchants love us, been in business since 89, all the references you can eat, and we have a staff that speaks FLUENT E-Commerce.

Reach out and get to know us!

I learned today that a merchant had nearly $8000 in batches held after they emailed me in a panic wondering where their money was.

Reaching out to Risk Management to find out what was up, I learned that the bank’s mail to the merchant was being returned, that the Risk Department had then called the Merchant, left a message on the owners phone (that was not returned) and called the business to find the number disconnected.

Merchant was not out of business…. Merchant moved and didn’t tell me, the bank, anyone, and they got their money held.

Good news is that their money was released immediately upon receipt of the new address.

If things change in your organization, let your merchant bank or agent know, request the change of address form and make sure they send and confirm.

International Telex Verification

To use it, call the normal card authorization phone number (800) 228-1122 and hold for an agent.

Don’t press ANY selection for a destination or you will get trapped and eventually dumped. Just wait. I waited nearly three minutes. Your mileage may vary.

Once an agent comes on, state that you have an International Address to Verify.

The agent will request cardholder information and will ask for the address you have. They will also ask for your merchant number.

If the Issuing Bank is available at the time of the call, the Issuing Bank will be contacted by a telex operator.

If the Issuing Bank is NOT available or cannot be reached via phone, the telex operator will take down all appropriate information & contact the merchant/representative once the Issuing Bank has responded to the inquiry.

In this case, they stated that they would Telex the bank in Tasmania, Australia that served the customer I was verifying and return with a verification call within 24 hours. They did exactly that and confirmed the address.

This service is not for any particular provider or bank. If you are a merchant on the First Data Platform, which most of us are, you can use it now to verify those international orders you want to ship.

There is no cost to use this service.

If you use this and find that the verification info routine has changed or you find a new number, please comment this post for the benefit of others.

We recently had 5 merchants move to our processing.

One saved $813 per year.

One saved $1360 per year

One saved $1900 per year

One saved over $3000 per year

One will save over $10,000 per year (all their sales were falling into the Rewards and Non-Qualified Category.. a big problem that their agent had not taken the time to correct. Told them there was nothing that could be done.. NONSENSE!

All these merchant’s rates were not “bad” to start with, but our wholesale rates created substantial savings for them, resulting in the savings shown above.

Would you fax me your recent merchant statement and let me show you the money?

The only person I cannot help is the one that does not take the time to reach out and that is a blunder considering the economy and the sales expected in 4th quarter.

Why not give yourself a bonus this Christmas?

Fax your statement in confidence to 818-286-1968 or pick up the phone and call me. I don’t bite, you will enjoy the call, and you won’ t be pressured to switch.

I let the numbers do the talking. If you are in a contract, we will cover your cancellation fee.