Online business and chargebacks
Wednesday, February 21st, 2007As usually webmaster and small business related discussions are going on at UK Webmaster forums. One of the post that caught my eyes was on that highlights one of the most serious problems facing small online business: fraud.
It is very difficult to get a payment processing account if you are strictly and online business, the few institution that gives you credit card payment processing facility give you at extremely unfavourable terms (for example WorldPay ask you for a deposit of your one month turn over and also pays you in arrears of four week.UK Webmaster forum senior member ablaye from USA highlight the problems he faces at one of his sites in this post:
The question says it all.
What is your worst loss in an online business due to fraud?
What steps did you take to prevent online fraud in the future?
Recently, I have been hit by a wave of fraudulent credit card transactions on some of my websites.
Over the years, I lost a few $xxx due to chargeback fees.
I am so glad that I did not have to ship any product. All I am offering are services that are promptly cancelled the minute I discover the fraud.
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