Card-not-presnt fraud transactions: burden of poof lies with merchant

[Anton]

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As I was reading a post about paypal allowing withdrawals to the Philippines. I came across a discussion on fraud transactions.

There's certainly currently a lot of misplaced fears in online credit card transactions.

The truth is, contrary to popular belief, credit card transaction online are actually safer for the consumer than having a lost wallet. As an online transaction is a card-not-present transaction, the burden of proof lies with the merchant. All you need to do is file a complaint with your issuing bank. Although, banks here do not have a charge back department, they are still required to initiate charge backs when a complaint is deemed valid. And most of the time, because online transaction are CNP, then complaints filed are almost always result in a charge back process being initiated.

And thus this is why i tell clients who want or are going e-commerce to prepare for. As this is an inevitable situation, sooner or later if your are selling online you'll have a charge back or a fraudulent transaction or both. Let me enumerate a few examples.
1. Merchant shipped the item, buyer initiates a charge back even if order arrives. Merchant assumes liability
2. Merchant didn't ship the item, buyer initiates a charge back. Merchant assumes liability
3. Merchant goes bankrupt. Buyer initiates a charge back. Bank assumes liability
4. Merchant ships item. Buyer initiates a charge back, because he never ordered. Merchant assumes liability

..... A lot of scenarios can actually happen, but then again, in online transactions, in my own words, "merchants are always deemed guilty until proven otherwise".

But, the merchant is not totally powerless here. What one can do is blacklist the card from his shop. Although the damage has already been done, most merchants are part of merchant groups or are using payment gateways. And thus in turn, that card is blacklisted in merchant from the group, or merchants using the same gateway. A certainly charge backs happen when a merchant is doesnt act careful. For example shipping to p.o. boxes, not asking the delievery receipt to be signed.. etc...

[the Messenger]

I know this is an old thread, but I'll revive it.

I recently attempted a charge-back because the item I ordered never arrived. PayPal told me I cannot do a charge-back and that I should resolve the issue with the seller. By the way, the seller was recommended by PayPal during a 10 percent off promo sometime February. I'm thinking that the promo must be the reason I'm unable to initiate the charge-back. Tsk tsk tsk.

[junmar4]

I know this is an old thread, but I'll revive it.

I recently attempted a charge-back because the item I ordered never arrived. PayPal told me I cannot do a charge-back and that I should resolve the issue with the seller. By the way, the seller was recommended by PayPal during a 10 percent off promo sometime February. I'm thinking that the promo must be the reason I'm unable to initiate the charge-back. Tsk tsk tsk.

Were you able to contact the seller?
Sa akoa, nabalik man ako funds when wala niabot akong giorder na RBX170 from musiciansfriend.com.