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  1. #1
    pph Expert! Gordon's Avatar
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    I came across this (part of the posting) on a forum (OOPS!! sorry Haiko but I have to go to other Forums for various bits of info) [img]/infopop/emoticons/icon_biggrin.gif[/img] I know who the merchant is but see no reason to reveal their name.
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>
    As for the Commission Junction program suspension... The CJ program had turned into a convenient means for unscrupulous people to defraud us. People were purchasing software through CJ using stolen credit cards and receiving both the software and their 20% commission.

    We put up with this for a long time, as CJ used to allow us to reverse a fraudulent transaction anytime. If a purchase was made in January and came back from the credit card company as fraudulent in May we would simply reverse the transaction in CJ.

    Recently, however, CJ forced a change on all vendors where the window of time to reverse a transaction due to fraud was reduced to just 40 days. This meant that if any purchase came back as fraud after 40 days WE were out of luck. Not CJ, not the affiliate.

    As you can imagine, when we're dealing with 20% commissions on $1700 purchases PLUS CJ's own fee for handling the transaction, this became a huge liability.

    So - no, we're not dropping the program because we're another dot com flameout - we're dropping it because a group of thieves ruined it for everyone. <HR></BLOCKQUOTE>

    I have not been screwed by this merchant but for the life of me I cannot understand how it takes so long to find out about a false credit card. Can somebody explain in plain English how this can happen?

  2. #2
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    January 17th, 2005
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    This happens quite a bit...you get a sale with a real CC that is okayed by the CC company and then after the people get the merchandise and then the bill they say they didn't order it or you find that the CC info not the card was stolen from somewhere.

    However, it's always the merchants fault for not calling the CC holder to verify the order. Home delivery Pizza places do it with every order so it ain't that hard to pick up the phone.

    We call on every CC order. About 5% are bad.
    But the other people are usually real glad we checked because the personal contact makes them feel good and we usually get a
    re-order or two down the road because we cared enough to check.

  3. #3
    pph Expert! Gordon's Avatar
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    Thanks Fredrick, I could not understand how it was possible, now I can understand it. But I still think merchants who have a 10% or over chargeback either
    A/ they only do business in Indonesia
    B/ they just plain are screwing with us affiliates

  4. #4
    ABW Ambassador
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    Gordon, hafta disagree... I have one merchant who has had (not now) a chargeback over 10%. I've been promoting them for 2-3 years and have sold thousands of their products (both in $ and number of purchases). In the entire time I've been selling them, I've only had ONE reversal -- I've NEVER had anything close to whatever their current chargeback rate is.

    The chargeback rate can be a thermostat (if someone has a chargeback rate of 100%, that DOES say something), but you've also got to be careful how you read it and yes, sometimes gamble and see if your chargeback rate matches the network... and then decide whether to drop them...

  5. #5
    Resident Genius and Staunch Capitalist Leader's Avatar
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    "Home delivery Pizza places do it with every order so it ain't that hard to pick up the phone.~Fred"

    Maybe in your area. But that can't be so easy everywhere--the pizza place I worked at for a summer didn't accept credit cards for deliveries. It was either cash or check.

    Cedric--I agree about taking the risk with high-chargeback merchants. Some live up to their average, but I have had good luck with others. When the luck's good, it's been well worth the risk of it!

  6. #6
    ABW Ambassador webmarm's Avatar
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    My cc# once got compromised on the net. Considering I never got debited for my firewall, I think it was that transaction. :eek:

    Anyway, the real life scenario went like this. I get cc bill, with an odd purchase on the net, from some France based company I don't remember buying from (later looked it up and it was lingerie). Think to my self that it is a bit funny, but the amount was close to what I recalled spending on a purchase, and I have had items billed under company names differing from the name I thought I was buying from. Okay, that bill was already some two weeks after purchase, right? Then NEXT bill (another 30 days later) I get a bill with some REALLY obvious fraud purchases. The places with their phone numbers on my VISA bill, I called right away. Sure enough, name given and addy did not match my info, and they reversed the charges, no questions asked (Real.com and someone else, I think). Other vendors did not have a phone number on my bill, and my bank visa dept basically held onto the debt while they got the charges reversed, and then credited my by then new cc with the returned charge monies.

    All in all, I really think vendors should definitely be required to use some sort of verification system. Whoever got my cc number didn't have any other info. If there had even been a look up to see that the name matched the name on the cc, the transaction could have been immediately denied or flagged.

    Anyway, that is my real life at least 50 days after purchase finding my cc had been compromised. That lingerie merchant must have been eventually tracked down by my bank. I got my money back a couple months later. So, if that was an affiliate purchase, then the merchant lost merchandise, and depending on how late they could reverse a fraudulent transaction, they may have lost pay to an affiliate as well.

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