As an online merchant, whether you are new to the game or whether you are a veteran of the online world, if you are taking payments online you have to be prepared to deal with fraud and chargebacks.
Within MOBI, we do everything we can to ensure any risk is mitigated. However, we can't always cover some scenarios which is where you, the business owner/operator comes into ensuring the loop is closed.
What is a chargeback?
When a customer has an issue with a charge on their credit card, they can contact their bank and dispute the charge. The bank will then make a chargeback.
A customer might dispute a charge for one of the following reasons (learn more here):
- Product not received
- Product unacceptable
- Credit not processed
Dealing with a MOBI Payments chargeback
If you have received a chargeback from MOBI Payments or Apple Pay, MOBI will immediately contact you with details of the payment and order.
The MOBI Payments chargeback process is the following.
- The customer disputes a charge with their bank
- The customer's bank makes a chargeback
- MOBI immediately contacts you with details of the payment in question
- The disputed amount and fees are reversed from your MOBI Payments account
- You gather evidence to figure out whether the charge was valid and send this to MOBI
- MOBI sends your response to the customer's bank
- The bank reviews the evidence
- Within 60 days, the bank resolves the chargeback. If you win, your payment is returned. If you lose, the bank keeps the payment and MOBI passes on the bank's chargeback fee.
MOBI does not make any money off of the chargeback fee. Mobi2Go passes on exactly what the banks charge.
Resolving MOBI Payments chargeback
The best way of resolving a chargeback is to talk to your customer to see if you can resolve the issue. Sometimes people forget about charges they make. If you can help them identify the charge and the customer agrees that the chargeback isn't necessary, then they will have to contact their bank and ask them to drop the chargeback. It's still worth submitting evidence of this discussion to challenge the chargeback in this instance.
Please send details of the communications with your customer onto our Support team.
Failing that, it's necessary to prove to the bank that the cardholder did authorise the transaction (although the latter is the hardest type of dispute to win.) To do this you must supply evidence to the bank, and that evidence must show that a service was provided to the cardholder.
For example: A signature on the receipt, or in-store video showing the customer receiving the order.
If you believe the charge was actually made using a stolen credit card, unfortunately you will need to accept the dispute. By default the credit card networks assign liability for accepting fraudulent online transactions to you, the business.
This liability can be moved to the banks using 3D Secure (details below).
MOBI Payments fraud mitigations
MOBI takes payments fraud seriously, as we know this has an impact on your business. As a result we've recently put some new fraud mitigations in place.
Fraud mitigations we offer with MOBI Payments are the following:
There's an 89% chance we've seen your new customer's card already, and our machine learning will help detect and block fraud before it happens.
- This has been on by default for MOBI Payments since day one. We're seeing many payments blocked before they become an issue.
More commonly known to customers as Verified by Visa, MasterCard SecureCode, or American Express SafeKey; this is an additional check at the bank’s website which can be a bumpy customer experience. This will shift the liability from the merchant/store to the bank*, however you are likely to see a reduction in successful payments due to the additional barriers to customers, and therefore a slight reduction in online orders.
- This can be enabled in your Payment Settings.
*When customers save their card, only the initial transaction is 3D Secure challenged and the liability is only moved to the bank for that transaction. Once the customer has saved their card, MOBI trusts that the cardholder had the right to use it.
If chargebacks occur from future payments the merchant/store will be liable. However, given the card has passed a 3D Secure challenge previously we assume they own the card and that it won't be reported for fraud in future. In this situation, it provides have a good defence to win the dispute.
MOBI also offers Apple Pay. Customers can only set up Apple Pay with approval from their bank, so as a result we've seen no fraud yet. For your store, Apple Pay can sit alongside any credit card payment gateway, or it can be provided as part of MOBI Payments.
From a store perspective nothing changes, you receive your payments through the usual MOBI Payments disbursements. For customers it’s the easiest and quickest way to pay with Touch ID or Face ID. We are also aiming to have Google Pay available in the near future.
- If you're interested in Apple Pay please contact our Support team.