|Fri Oct 10 2014 14:42:18|
Refusing to Ship to Credit Card Thieves Is Hurting Our eBay DSRs
Our online eBay fine jewelry store has been targeted daily by Miami area credit card thieves since September. They always use the same @outlook.com email domain, always have two or less feedback ratings (usually zero), always use mail box stores, and always purchase the same seven item numbers - all made of solid gold.
When we called PayPal about these fraudulent credit card transactions, the initial direction was to go ahead and ship. But as the totals from the charge backs continued to increase, we received a call from PayPal Fraud asking us not to ship. It was pointed out that if we continued to do so the credit card companies would direct PayPal to no longer work with us.
I then began working with PayPal and eBay to ensure that we minimize our eBay order defects while also minimizing our credit card charge backs. We beefed up the limitations on accepting bid in eBay but the options are of limited assistance in this case. I tried temporarily raising the prices dramatically on the jewelry the thieves were purchasing, but they simply started buying something else made of gold from our store.
eBay directed us to create cases in their Resolution Center under "The buyer and I agree to cancel a transaction" with "Other reason" selected and a comment to the effect of "This is a fraudulent purchase. I am acting as directed by eBay and PayPal."
Every day I come in block the new fake bidder ID, report the new ID, alert PayPal of the new ID and any new box store addresses, and later in the day cancel the transaction as described above so that PayPal and eBay have time to start working on the latest fake buyer ID.
We've also been working hard using my Lean Six Sigma background to bring our DSR defects down as much as possible. eBay collects data for their Seller Dashboard trending data pop up between Tuesday and Thursday of each week in preparation for finalizing the numbers for 20th of the month.
When I came in to the office this morning (Friday, October 10th) I noticed that we had a defect bringing our October defect rate to 2.17%. It is due to a transaction that I cancelled following a process that was outlined to me by eBay customer service.
I called eBay and after two hours of run around and a call dropped due to an issue with their Voice Over IP, Escalations told me that they cannot remove this defect due to their processes and I could not speak with anyone in a higher position of authority.
In effect, I would have been better off shipping this item even though I knew it is another case of credit card fraud. I have two more of these high dollar purchases from overnight to act upon. How can eBay continue to treat its suppliers/customers in this manner and expect to remain viable?
I'm sending this in hopes that someone with connections within eBay corporate (or perhaps with leveraging power with their business partners, PayPal, VISA, MasterCard, AmEx, etc., will act upon it so that sellers will be protected. Also, perhaps someone on this distribution has some advice on how we can tweak our approach further.