Chargebacks, and possible credit card fraud through online ordering

[Scoopsontap]

Hello,

Happy new year to all! 

I believe a person is using stolen credit cards to purchase from us through online orders for delivery. 

In the past two weeks we received two orders through our Square website for delivery where both orders had the credit card holder issue a charge back.  Both orders were for us a large amount of money. 

We found out that the two orders shared the same delivery address, and same doordash delivery driver.

Looking at the names of the credit card holders - they are not the same last name.  In fact the last names suggest one is Asian and the other card holder is Hispanic.  Now they could be roommates.  But this seems too suspicious to us.  It seems unlikely we've had two orders delivered to the same address through the square online ordering system with two different credit cards named by two different people issue charge backs.

Anyone experience an issue like this?  If so what did you do?

We have setup a risk management on Square today, but it seems like it doesn't go far enough and if this person wants to continue doing this to us that they will be able to.

Any suggestions would be appreciated!

Thanks!

[Candlestore · Accepted solution]

@Scoopsontap ;

I have been on the other end than what you are on.  2 times my Credit Card info was stolen and attempted to be used.  I caught both of them within 8 hours of being used.  My bank flaged all sales so items were not shipped, but with food items that would have been losses to the businesses.  Your case might be better to file or at least talk to the police in your area.  They might be able to get ahold of the people since you have receipts and addresses for their purchase.  

People have tried placing $20,000 orders already with us and we call before shipping anything over a lot less than that, unless it is from a current customer aleady that mad similar purchases.  Problem with Credit Card thieves is they now have skimmers to read Tap cards.  So like the one time mine was stolen was someone waled up behind me with a bag and their hand in the bag.  That evening I had purchases in NY, Utah, and Nevada.  2 were at food establishments and 1 was for a Xbox system.  Both times my Credit card was stolen, it was used for online purchases and I still had my card in my wallet.  The most recent one was I had 20 purchases online while I was sleeping.  

The problem you have is that when the items were delivered to that address is was by a 3rd party (Door Dash) that probably had 2 different drivers and how would you ID the customer (theif).  Now if you file a report with the police nothing may happen but if other businesses in your area do the same if they deliver to that address and are out money as you are.  All these reports would be to the same address and force the police to do something.  Now the best thing you can do is flag that address so these sales have you or an employee call to confirm the order.  

[Ellie_]

Hi there, @Scoopsontap,

We recommend reading through what @Candlestore advised, as they are a Square Champion who has experienced chargebacks on their account and how they handled this. 

However, due to the nature of your post being account specific, I've moved it to a private board per our Community guidelines. The Seller Community is intended for seller to seller conversations and we do not have access to account specifics here. I'd recommend checking your emails for an email from our Account Services team as they typically reach out that way and can direct you further. You can also check your online Dashboard for a notification as well.