Is it safe or wise as a Seller to accept Credit Card Payments

[Allstar 42]

Is it safe or wise to accept Credit Card Payments?

I have had a few queries for it not many, I don't offer that option at the moment due to the fact that a credit card payment can be charged back sometimes months after the fact and you lose all funds and obviously what you sold. Often people that request it are orders from outside of SA which makes its even dodgier, 99% of local SA buyers can use bobPay or direct EFT.

 

Am I seeing things as they are or are my fears unfounded?

[NooNooBug 10]

I was like you, hesitant to allow Credit Card Payments. After much deliberation I opted to try it out for Overseas buyers only, however that never worked as people do not read and it was a pain in the +*^# to constantly reverse a payment & notify the buyer. I opted then to allow Credit Card Payments across the board. It does cost you an extra 5% in fees but has been worth it for me as I have had many overseas sales which I would not have had otherwise. The charge back thingy is a concern but I think BoB have many things in place to try an combat fraudsters as best as possible. Sometimes you have to just decide if it is worth it for you and just take that step forward.

[Free Soul Styles 10]

I've also been reluctant to allow this option. The issue for me is the 5% fee. How do you work this NooNooBug? Do take the hit or the buyer?

[mrmouse 12]

I've also been reluctant to allow this option. The issue for me is the 5% fee. How do you work this NooNooBug? Do take the hit or the buyer?

Credit card works and there is no risk to you at all ,so you loose 5% woopee but you will sell more items .

[Allstar 42]

Credit card works and there is no risk to you at all ,so you loose 5% woopee but you will sell more items .

 

Who takes the loss if there is a charge back?

[Vinyl Lady Decals 11]

The seller does, but, i have been trading since 2008 and have been accepting credit cards the whole time, there has never been a chargeback yet.

[Miss Jewels 10]

I've been accepting credit card payments for more than 2 years and only had one (huge) loss. The buyer was a scammer, bought a ton of things on BoB, and had all the credit cards transactions reversed. I lost 4K on that deal. Without contacting me, the seller, the transaction was reversed and I was out of pocket. But as I said, it only happened once and it has not stopped me accepting credit card payments. If I'm unsure as to a buyer, I contact the community watch guys and get the buyer checked out.

[Allstar 42]

So its a risk you choose to take, just hope you don't get into the grasps of the scammers?

Credit card fraud is so prevalent internationally, I'm not confident accepting international buyers with credit cards.

 

Is there no protection for sellers, nothing stopping a buyer from requesting a chargeback from his card issuer?

Its a you said/I said kind of situation even if it does get to the point of an investigation on the part of the card issuer and the card issuer always sides with their client.

[Allstar 42]

Here's what Bob says, mentions EFT reversals as well, they do happen but virtually never compared to creditcards:

 

bobPay User Agreement

 

Risk of Reversal of bobPay Credit Card And bobPay EFT Transactions

 

When you receive a payment through the bobPay Credit Card service, you have a choice of accepting it or rejecting it. If you choose to accept it you are not protected against a subsequent reversal of the transaction (or chargeback). In the event that the sender's transaction is reversed for any reason you will owe bidorbuy for the amount of the reversed transaction plus any fees imposed on bidorbuy as a result of the reversal. Examples of such a reversal include, but are not limited to, a credit card reversal by the sender of the payment and a reversal of the transaction because the sender of the payment was using a stolen credit card or unauthorised bank account.

 

In the unlikely event that a bobPay EFT transaction is reversed by a bank for whatever reason, you will owe bidorbuy for the amount of the reversed transaction plus any fees imposed on bidorbuy as a result of the reversal.

bidorbuy will seek to recover the funds from you by debiting your bidorbuy account balance and, if there are not sufficient funds in your bidorbuy account, bidorbuy reserves the right to collect your debt to bidorbuy by any other legal means.

 

Withholding: In order to cater for potential chargebacks and/or reversals on certain payment methods like credit cards, a certain percentage of all funds received on your behalf into bidorbuy's bank account, may be withheld for 4 months or such other specific period (Holding Period). During the Holding Period applicable to any specific funds received by bidorbuy, you will not be entitled to, and bidorbuy will not be obliged to, pay you the Withheld Portion of such funds. In the event that the funds held by bidorbuy on your behalf are not sufficient to pay a refund to a Payer, you will be liable to refund such Payer directly.

[Free Soul Styles 10]

Maybe one day... Thanks everyone!

[NooNooBug 10]

Scary but then there is a risk with eft's too ! Must say if someone with Credit Card buys over a weekend I try and delay posting till later Tuesday just to give time for things to "go through" to the various banks...don't suppose that will prevent anything but ... The 5% is for the Sellers account because apparently we are not permitted to ask for it back from the buyer. I have in the past seen sellers stating they will charge an additional 5 % for Credit Card payments aswell as Paypal. Does anyone know how come you can claim the Paypal fees but not Credit Card fees?

[mrmouse 12]

the risks with BoBpay are just as high , I made a purchase , never recieved the item , sellers account was later blocked , I never got my BoB pay payment back, was told by BoB , TOUGH , it happens .

[mrmouse 12]

I did have one buyer trying to use a stolen card around 2 years ago for around R1000 , BoB picked it up very quickly and informed me .If you run a reatail shop the risk is also there , if the card goes through the speedpoint the bank will pay , if there is a claim after a while you will have youre say with the bank .in 22 years as a retailer i have never had a reversal done yet.

[qball 12]

We have recently introduced 3D Secure - which greatly reduces the risk of credit card fraud and charge backs.

 

Read more about it here - 3D Secure Credit Card Payments - Powered by Kayako Help Desk Software

 

Please note, this does not protect a seller if they do not ship the goods. In some limited instances charge backs may still be initiated.

[NooNooBug 10]

Thanx for that qball, one question though. No mention of Overseas buyers, do overseas banks also make it mandatory as ours do ?

[qball 12]

Visa and MasterCard are making it mandatory, so at some stage all banks, issuers and acquirers will need to be enabled.