These comments apply to the selling of merchandise where there is NO
authorized signature i.e. 800 numbers, by fax and on the Net.
Here's my point.... no one worries about credit card fraud from a distance,
Why? Because no one is liable except the merchant. Let me explain.
1. The consumer is NOT liable for any charges to the card where the
merchant cannot produce a signature, i.e. you can call and make an order on
an 800 number and then dispute the charge. If the merchant does not have
your signature from a delivery service or on the original order, the bank
disallows the charge and the merchant eats it. That's why expensive
merchandise ( such as computers) is sent by courier who obtains a
signature.
2. And what's worse NO one in the credit card system cares. Here's a real
life example. I received an order by 800 number for an information
product. A few weeks later I received a second order for another
information product ONLY advertised in the original publication.
The customer said he never ordered the products. My 800 billing records
gave his telephone number as the originating number. I could cross
reference this to the order forms from my fulfillment service to the exact
time of the order.
His bank disallowed the charge because I had no signature.
I contacted security in his bank, my bank and the credit card service
bureau. I told them I had documented evidence the order came from his
number. They did not wish to pursue the problem.
I talked to a VP in my bank who negotiates the contracts with the service
bureau. He acknowledged this was a problem in the industry. I asked him
what could I do? He said talk to my congressman because at that time there
was a bill being considered in Congress. That's right! An industry
insider recommended I contact my representative.
3. To summarize, credit card fraud is not agressively pursued so I don't
get real excited about it. As a consumer I know I have no liability if my
number is stolen.
As a merchant the loses are a "cost of doing business", just like
shoplifting in the retail market. Except I have NO way to protect myself
because my products are low priced. $15-$30. The additional cost of
special handling (signature acceptance) is prohibitive.
4. There is no "credit card fraud" police to report the problem to who
will agressively pursue the thief.
Sorry to sound cynical but life does that sometimes. I find the
discussions hollow.
Don
-------------------------------------
Don Massey
Massey Publications
1005 Ashford Court
Fort Collons, CO 80526
970-229-9863
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