Customer Blacklisting for Creating Chargebacks
 

Interesting read here:

http://www.walletpop.com/blog/2010/0...-to-blacklist/

We used to put something to that effect on our joinpages.

full of problems and if they are US based, expect a lawsuit... :2 cents:




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Don't understand why it would lead to lawsuits assuming the merchant has a positive reputation - that is, isn't known for deceptive practices themselves. CCBill does this routinely for their scrub. Check clearing companies have been doing it for years. Just once write a check that bounces, and if it's reported your check may be declined at many retailers who use the same verification service.

doing it internally is one thing. doing it externally is another..

what are the controls? what if someone had a valid c/b.. the issues with this are far reaching..



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Do they charge an arbitrary fee to have the listing removed?

Doesn't the 3 credit bureaus do something like this externally.

Whats blacklisted? The credit card #? Seems easy to change that up without having to fucking pay $99...

they are regulated by the FCRA and a few other laws..

this service is not regulated and makes you pay to get off the list..

too many ways to get sued imho...





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I think its a great service!

I could be incorrect, but I believe in netbilling if you ban a transaction and mark it as fraud, its netbilling wide. Like I said, I could be incorrect, but I heard this before.

I have seen a program recently say a customer will be liable for $15,000 in damages if he files a false chargeback lol

Lots of processors keep a blacklist and you're added to it if you do a chargeback or request a refund.

Yep, but this is a global blacklist maintained by a third party company whose business model is to charge the consumer a removal fee.

This is already done to some degree.

I know for a fact CCB and Verotel will add that person's name, CC, and email to a blacklist if you charge back. Whether they share that list with others, I do not know. I have not heard on what Zombaio does yet. Although, I historically do not get a lot of charge backs on my membership sites.

I do not think I even average 1 a month over YEARS.

I could see this being a huge privacy issue.

Or, you might as well provide a half crap service then use these guys. If someone CB's from you or anyone in the system, but they end up buying from you at any point - you can upsell the removal service and make money that way - and you might make your sale as well.

That's nasty...

It's still internal. Member sites have signed up to use same verification service. You won't be blacklisted unless you try to join a member site. Check service companies work exactly the same way. And some actually do have a "clearing" charge which is paid/shared to the merchant that suffered the loss.

Assuming they base the scrub on the card # alone, if a card was stolen and charged back, then that CC # will not be used again. The same customer will be issued a new card and it will be accepted.

The only other way a customer would get on the list unfairly if they were forced to charge back following some kind of merchant misconduct, but I doubt these sites will be members of such a service. And if they are, any verification service will consider the number of chargebacks to a merchant to determine if their claims are reputable.

If you use CCBill or Epoch or any other third-party biller these anti-fraud measures are already in place, and I don't see them being sued by anybody over it.