What should I do if I suspect fraudulent order?
Note: This is for merchant account, not Paypal.
I have read a couple of articles about what to do with fraudulent orders and somewhat each of them have different recommendation.
There is a common process that each of the articles I have read in things to do for possible fraudulent orders. You can verify there identify by asking for a photo of there ID/driver's license, a selfie of them holding the ID, and the photo of the credit card they used. Another thing, is to call the card processor to verify there information, and there's more way.
But my question is, what should I do after that?
If I have confirmed that it is fraudulent order, my big question is:
Should I issue refund or wait and absorb the risk later on if it happens (chargeback).
Some article says is to refund for the reason to avoid the chargeback that may happen later.
Some articles says, don't do the refund, just wait for the chargeback if it happens because, if you refund, the cardholder can still file a dispute and you may incur double charges , the refund and the chargeback.
I am confused in what to do at the moment.
Last edited by jerberson12; 07-18-2018 at 08:23 PM.
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