When taking payments online you have to be prepared to deal with fraud and chargebacks.
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 (read further details):
- Product not received
- Product unacceptable
- Credit not processed
Dealing with a Mobi2Go Payments chargeback
If you have received a chargeback from Mobi2Go Payments or Apple Pay, Mobi2Go will immediately contact you with details of the payment and order.
The Mobi2Go Payments chargeback process is the following.
- The customer disputes a charge with their bank.
- The customer's bank makes a chargeback.
- Mobi2Go immediately contacts you with details of the payment in question.
- The disputed amount and fees are reversed from your Mobi2Go Payments account.
- You gather evidence to figure out whether the charge was valid and send this to Mobi2Go.
- Mobi2Go 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 Mobi2Go passes on the bank's chargeback fee (rates here, please note that Mobi2Go doesn't make any money off this, we're passing on exactly what the banks charge us).
Resolving Mobi2Go 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, so please send details of the communications with your customer to email@example.com.
Failing that, it's necessary to prove to the bank that the cardholder did authorise the transaction (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, such as 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. Please note that this liability can be moved to the banks using 3D Secure (details follow).
Mobi2Go Payments fraud mitigations
Mobi2Go 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 Mobi2Go 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 Mobi2Go Payments since day one. We're seeing many payments blocked before becoming an issue.
Post code validation
When asking a customer for their card details we can optionally ask for their post code. Banks can choose look at the post code and reject the payment if it doesn’t match. It’s up to the bank whether to check or not, and not all banks do, so it’s not a solution to solve all fraud.
This can be enabled in your payment settings.
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 reduction in online orders.
This can be enabled in your payment settings.
* Please note that 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 we trust that they 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. We'll have a good defence when facing this situation.
Mobi2Go 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 Mobi2Go Payments. From a store perspective nothing changes, you receive your payments through the usual Mobi2Go Payments disbursements. For customers it’s the easiest and quickest way to pay with Touch ID or Face ID. We’re aiming to have Google Pay ready soon too.
If you're interested in Apple Pay please contact firstname.lastname@example.org.