The Credit Reporting Agency has added the National Chargeback Register to its online commercial credit reporting services to help combat the increasing incidence of credit card fraud that is impacting the profits of retailers.
Chargebacks happen when a card user asks the card issuer to refund a transaction because they claim their card has been lost or stolen. Originally designed to help protect the consumer, chargebacks are increasingly being used by fraudsters and are having a serious impact on retailer profits. Transactions over the internet, by telephone and mail order are particularly vulnerable, where the retailer has no ability to challenge the dispute, even if it is clearly fraudulent.
"For most retailers, chargebacks are a growing problem" says Tom Telford of Credit Reporting Agency. "Goods are sold and dispatched after being purchased by credit card. Then, often without warning, the transaction is reversed because the cardholder denies using the card, or denies receiving the goods. By sharing information about chargebacks, for the first time retailers can check to see whether a card has a history of charging back. This will enable them to make a more informed decision on whether or not to accept the card for payment. If fraudulent chargebacks can be detected, the losses incurred will no longer have to be passed on to genuine consumers, and that can only be a good thing, not only for retailers but also for the man in the street."
To use the service log on to www.creditreporting.co.uk to register. After passing a security check retailers can search a wide variety of databases for commercial credit reports.
25-Oct-2004
