The Boston Globe has a story about consumers who purchase items with the full intention of returning the items for a refund. These serial returners don't buy merchandise so much as "rent" them. According to the article return fraud costs retailers billions of dollars a year because the goods can not longer be sold as new and either must be sold at a discount or discarded.
Are you a retail renter and would you look down on those who do stuff?
There are a few ways to get past this:
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1. Issues regarding customer changing their minds, wrong sizes or that customer doesn't like the item anymore - should be stated quite clearly your refund/returns policy; and that it will not be justified for a return; unless the item is defective or damaged.
2. Only accept credit card payments if you have a verification policy in place. ie. Request a scanned copy of the back of their credit card, along with a signed signature statement. This way, it is harder for them to do a charge back/ claim an unauthorized transaction as their last resort if they are unable to get a refund off you.
3. Check up with customers via email after they receive their goods and make sure everything is fine. This will keep the good customers happy, and gives you email evidence from the bad ones should you need to refer to these in the future.
3. With accepting Paypal payments, request copies of a Bank/Phone Billing Statement as well as ID; should they start a Paypal dispute. There are a 3 different forms of disputes,
- Unauthorized Credit Card Chargeback: You will need to send Paypal copies of that buyer's scanned copies of the Bill or ID.
- Unauthorized Account Access disputes - Alot of them think they can getaway with claiming their account was stolen overseas and did not purchase your product (even though they have received it). As long as you have a copy of their ID, bank/phone billing statement with their address - the dispute will be in your favour.
There are a few ways to get past this:
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1. Issues regarding customer changing their minds, wrong sizes or that customer doesn't like the item anymore - should be stated quite clearly your refund/returns policy; and that it will not be justified for a return; unless the item is defective or damaged.
Maybe in OZ, but not in the Good Old USA. You can state it, you can even stand there and argue with them and run them out the door. But, you won't be in business for very long.
2. Only accept credit card payments if you have a verification policy in place. ie. Request a scanned copy of the back of their credit card, along with a signed signature statement. This way, it is harder for them to do a charge back/ claim an unauthorized transaction as their last resort if they are unable to get a refund off you.
Copying or in any way whatsoever recording the CCV code on the back of credit cards is a MAJOR direct violation of your card processing agreement. This is the lifeblood of their security. It could bring serious repercussions.
3. Check up with customers via email after they receive their goods and make sure everything is fine. This will keep the good customers happy, and gives you email evidence from the bad ones should you need to refer to these in the future.
Always a good idea. If possible, get their permission to continue to send them occasional emails.
3. With accepting Paypal payments, request copies of a Bank/Phone Billing Statement as well as ID; should they start a Paypal dispute. There are a 3 different forms of disputes,
- Unauthorized Credit Card Chargeback: You will need to send Paypal copies of that buyer's scanned copies of the Bill or ID.
- Unauthorized Account Access disputes - Alot of them think they can getaway with claiming their account was stolen overseas and did not purchase your product (even though they have received it). As long as you have a copy of their ID, bank/phone billing statement with their address - the dispute will be in your favour.
Not in this lifetime. The whole idea of using PayPal for many people is to keep from entering their card number. Again, maybe in OZ, but in the US if you asked for that you would be the one talking to the police.
It may be fine for PayPal to request such information, but it would be a cold day in Hades before anyone I know would not simply flip you the bird and go on with their lives.
Hope that helped
There is really a much easier way to handle the problem - don't sell on eBay.
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Are you a serial retail returner?
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November 2008
