Ecommerce payments

T

Tony

Registered User
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77
Hi,
Does anyone here have a ecommerce site that is integrated with Paypal I was wondering what would happen if someone was to purchase an item on my site and i shipped the item and then discover that the card was stolen. Am i suddenly out of pocket?

Regards
Anthony
 
What do the Paypal Terms & Conditions say? Surely as a merchant you have read them?
 
Not sure about a site that you need but here is some advise as I am currenty looking at becoming a card services merchant using Elavon and reading their T and C's they mention if a card is used thats 'stolen / borrowed' the bank will reverse the transaction using a chargeback to the merchants bank account
 
Thanks all I think I should be ok if i am using paypal, how often does it take to discover if the card was stolen normally after it was used?
 
If the card is stolen, a chargeback will be issued and you will be out of pocket. This is an inherit part of ecommerce however there are things you can do to limit your exposure.

There's a legal gap that you can maneuver around in terms of when you receive the order and when you ship it. It's tight and sometimes chargebacks occur over a month later.

The other things you can do are; don't ship to certain countries, don't ship if the card address doesn't match the shipping address (the card address is sent to you in PayPal's IPN), don't process unusual orders.

The other side of things is that if you can get an IMA (internet merchant agreement), most payment processors such as Elavon and Realex have very sophisticated anti-fraud technologies, including the ability to use 3D Secure and SecureCode for Visa and MC respectively.
 
You're actually protected against fraudulent chargebacks with PayPal as long as you ship with a company (SDS is accepted I think) that offer a verifiable tracking number. Give PayPal a call.
 
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