Stolen card payments.
WHAT HAPPENS
An order is paid with a stolen card.
The genuine cardholder disputes it.
The funds are reversed, frequently with a fee, and you have already dispatched.
WHAT TO WATCH FOR
An unusually large first order Delivery address different from billing Multiple failed attempts then a success Rapid repeated orders An unreachable phone number A rush delivery request
WHAT TO DO
Confirm large or unusual orders by phone before dispatch Use your gateway's fraud controls Keep evidence of every order and delivery
THE PHONE CONFIRMATION
The single most effective control available to a small shop.
CARD TESTING
Repeated small transactions verifying stolen numbers.
It generates fees and can affect your gateway account standing.
Enable your gateway's controls.
WHAT EVIDENCE TO KEEP
Order records Delivery confirmation Communication with the customer
That is what a chargeback dispute requires.
