Am Ex fraud???

[ed4copies]

We are now having a raft of orders, all using different AmEx numbers. If one is not approved, they switch to another (yesterday's guy used 4 before one was approved). This has caused me to give the situation some thought.

I now would like feedback, to see if there are "logic flaws" before I report this to law enforcement.

Say American Express has had a whole bunch of numbers compromised. Then say this guy has located those numbers. He tries numbers until one works, then he gets $500 (or any other number) of goods delivered. Of course, since it is a stolen card number, he will NOT pay the bill, American Express will. The "crook" has no reason to dispute the charge-he has goods and will not pay for them, since the card is stolen.

HOWEVER, if American Express tells the vendor there is a dispute, then AmEx resolves the "phantom dispute" in favor of the cardholder--AmEx is off the hook and the vendor eats the cost.

Why should I not believe this is the case??

 

[duncsuss]

Why should I not believe this is the case??

Because bankers never lie?

I think you could reasonably contact your state attorney-general's office just to talk about it with them. A "go-getter" might recruit you to tempt Amex into breaking the law (just this once, I'm sure they never do it routinely).

 

[stonepecker]

Personally, I wouldn't accept the Credit Card from Am Exp.
I would call them and ask to speak to their fraud dept and have the card numbers standing by to give them. I would also have the address to where the good are to be shipped.

4 numbers before one works........sorry, I would refuse the order personally.

JMHO

 

[jttheclockman]

Oh being this is not the first time you have had a problem, i think you do need to investigate and maybe put a notice on your site something to the effect you will not be taking AM cards for the near future. If you lose some business it will not be a problem because you would have lost anyway if it does pan out to be true of a batch of stolen cards. You always can adjust later on. I know this is a business decision but there are not many here that do the volume you do so you may not get a fair reply. Has to be a way to investigate this. You have documented proof. Good luck.

 

[JohnU]

Ed I would also suggest you contact AmEx on the situation to see what their policy is on a fraudulant transaction. I deal with LOTS of these every week at work and see where the financial victim is often off the hook after filing a report with their fraud department, but I rarely see where the merchant makes out. Good Luck!

 

[cjester]

Technically there probably is a dispute - the actual cardholder disputed the charge. But there's clearly a difference between "I didn't get what I ordered" and "I never ordered anything from there." AmEx knows the difference, they're passing the dispute on to you because they can.

They're right to protect their cardholders. They also need to protect their merchants. If they're not willing to, then they're implicitly saying "no need to take our card."

I had a Visa number stolen a year or so ago. My bank called me within an hour of the number being used - and that was for a somewhat local transaction (Apple store downtown, I'm out in the 'burbs). AmEx has to know. Either they'll step up and help, or they're implicitly telling their merchants that they don't care if they get dropped.