Retailers tightening up - anybody experienced this?

[MadSam]

I'm away at the moment and decided to order this big ticket item to be there for when I get back. I placed the order, paid the money, order confirmation, money gets taken from account, everything fine I think. A couple of days later I get a phone call from the retailer, since I paid for courier I had hoped it be delivered or well on it's way by now.

They take me through security like I'm talking to the good old days of eBay. What did you order, your name, address, last 4 digits of your card, etc. Already I'm a bit annoyed that they haven't even dispatched it yet, they tell me this is my first order with them, which it is, and it's for a very high priced item. As such, they wanted me to fax or scan one photo ID and two proof of address in order to proceed with the order. As I was away and didn't feel like the PhotoShop I said, "Fine, just cancel the order."

Placed the order with another company and I already have the tracking number for it's dispatch, although it won't be there for when I get back. I've never experienced this before and it seems like a good way to piss off customers and lose business, for what fraudsters it would deter from using PhotoShop.

Has anybody else come across this?

[GreenBean]

Yep. If a buyer has no credibility then some companies put buyers thro' the wringer to make the sale.

Sadist that I am (or is that masochist) I use paypal. Seriously, for online stuff, I use them. Just purchaed an item from the USA. Cost over US$600. Company not impressed until I 'offered' paypal. Go figure.
Uusally I would use the company CC as well. For the sake of a name that works too.

[MadSam]

Most credit card processors have fairly good fraud prevention and identification software that help determine if a transaction is high risk. Kind of algorithms that identify factors that might indicate fraud. As it is, I have to say PayPal's software is very good at this. I know what trips these things off and there was nothing about this particular transaction to indicate anything funny.

Do you think we'll see more of this kind of over the top, or just retailers that have had a horrible experience and do anything, even sacrifice sales, to avoid it happening again?

[GreenBean]

tbf, unless you work in the actual departments that handle fraud protection, you may be aware of part of the algorithms. Certainly the 'on-paper' you may well be fine. But if that company has some factor not known to you, then the problems outlined occurred.

Despite claims the recession is improving, retailers are (always) going to be selective with sales. Fact of business. I'd think of checking the viability of that company. Might it be in financial strife? Many factors to consider

[jeffweico]

I think this is just the retailer being cautious. An online sale of a high-priced item to a new customer... I doubt they do that with every order, but if the price is over a certain amount to a new customer, they probably just want to make sure the order is real.

What surprises me is that you guys are surprised. We have all seen examples of buyer fraud - and most of us have had a chargeback at one time or another. I'm sure the company was just trying to protect it's ASSets.

[MadSam]

Sure I understand that Jeff. It's just this particular thing, being asked to send 3 pieces of identification, that surprises me.

[jeffweico]

It seems like ever since the banking meltdown, nobody trusts anybody.

Unfortunately, that is the new reality.

[MadSam]

Only recently I've started to agree with that view. This kind of reminded me of long time ago when I was really young and a lot more stores used to accept checks as a form of payment provided they knew who it was or could provide valid ID, and the less they trusted someone or they had a history of bad checks then the more ID they asked for.

[aspkin]

You're out of the state or country and order a big ticket item not expecting any concerns from the online retailer you're doing business with?

If a retailer is smart, they're checking every order for signs of fraud. And one very large sign of fraud is a customer ordering from out of state or country. It's a sign that you may be a scammer... especially if the order is of high value.

There are A LOT of scammers out there doing this every second..

Being a smart retailer and verifying each order can be the difference from being successful online to closing your online doors.