American Express scam??

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ed4copies

ed4copies

Local Chapter Manager
Joined
Mar 25, 2005
Messages
24,685
Location
Racine, WI, USA.
Rarely do I encounter something that I can't figure out how to deal with, but we have such a situation--I am looking for suggestions, especially if you work for a credit card company or have had similar experience.

A couple weeks ago, Exotics got a "charge back" (money refunded to the customer) for a shipment that went international, and the delivering mail service said it was delivered. There was no signature. American Express said since there was no signature, they would refund the customer--so we are out the goods and don't get paid..

Exotics is small, but suddenly we have several international orders from this same person, all using different American Express card numbers. And, there are suddenly several others using American Express, both international and one domestic.

We don't know whom to contact.

Any ideas??

Presently we are cancelling the orders, since none of them leave a phone number, so we can't follow up.

What do you suggest??

Oh, and watch out if you get orders paid for by American Express!!!!

My theory is that American Express KNOWS these are stolen numbers, so they will not be able to charge their REAL customer and they would rather charge Exotics than have to eat the cost themselves. To whom do I report this suspicion??
 
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Best thing to do is to contact AmEx and explain the situation. Send them copies of the sales orders with the numbers so they can look into it. I looked on the Security Center page on the AmEx website and you're right, it is mostly consumer oriented.

You may want to contact the business liaison section. Or, use this page: https://optblue.com/disputes/
 
Contact the state's attorney's office in your state & explain the problem to them.
They should be able to help, take direct care of it themselves, or point you in the right direction. You shouldn't have to eat any costs because you are the merchant. I would also call AMEX & speak directly to their fraud dept & ask for a refund of your entire losses.

As for the same person ordering again, either ignore the order, or send them a reply & tell them you refuse to do business with them since they are thieves. Nobody can do anything to you because you refuse to serve someone.

Most every business I ever dealt with in person or online has a policy of reserving the right to refuse to serve anyone.
Maybe you want to add that disclaimer on your website ASAP.
 
Ed,

If I were you, I'd consider refusing to accept Amex as a payment method, along with insisting on shipping through agencies that certify delivery (either by signature or requiring pick-up from a depot/office).

I would let Amex know that their policy of "the purchaser is always right" is the reason you will no longer route any money into their pockets.

If they don't listen to that, it doesn't make sense to leave yourself exposed.

Hope this is resolved and you get paid for the product you shipped.
 
There was a recent phishing scam involving AmEx. You know, "We have detected unusual activity, please login to our web site following the link below...." etc.

So it is likely that AmEx knows of this.

Last thought. Many sites that do online orders, will not ship to any address other than the address registered to the account.

PS. Post the persons name. Cockroaches hate light!
 
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Also contact BBB (Better Business Bureau) ... report the issues with AmEx and ask them what information they need to be able to file a case on your behalf or investigate ...


And don't forget to let AmEx know that you're contacting the BBB, after all YOU'RE a victim here, too.
 
walshjp17 said:
Best thing to do is to contact AmEx and explain the situation. Send them copies of the sales orders with the numbers so they can look into it. I looked on the Security Center page on the AmEx website and you're right, it is mostly consumer oriented.

You may want to contact the business liaison section. Or, use this page: https://optblue.com/disputes/
Click to expand...

Ed, this is your best option. Call their Customer Service number and ask for their Security Dept. (or fraud) give them the card numbers and addresses and let them know what is going on. I work at a Credit Card center and can tell you that most of the time we will side with the Customer unless you have proof. Let them know that you have been burned already and want to keep others from the same fate. Best of luck Ed :)
 
Ed,

My company has had so many charge backs from American Express in the last year that we no longer accept it. We have that right and so do you and for your own protection, especially on international orders I would refuse to accept it. BTW, one of our charge backs was for $19,500.00
 
As a consumer, I will say I have never seen so much credit card compromisation (word???) as with Amex. They must steal them often at gas stations but I will say they do flag it quite readily and they refund you the money so you are never hurt, but they seem to do absolutely nothing about it. It's almost sickening, but now I guess I see how they "afford" to do this... just pass on the expense to the merchant.

I would play it safe and reach out to the international customer firstly. Amex should be able to tell you exactly what you need to be within their guidelines. On the business end, I've only ever had 1 "dealing" with the credit card co. (paypal) it is was unpleasantly alarming how little consideration they give to a vendor.
 
We did contact the international customer by email. Our software said he opened it, no reply from him---what a surprise!!

This was BEFORE we talked with Amex--didn't matter to them, apparently.

We are MUCH more vigilant now on Internationals and AmEx.
 
Hi Ed,

I am sorry to tell you that even if you had a signed proof of delivery (international or domestic) Amex would have taken the part of their customer not you. I've had this happen with both them and PayPal. On the other hand as a customer I have been bilked by a major car hire company and had Amex side with them in order to keep the companies business. I no longer accept Amex and also cancelled my amex card and will not ship any PayPal order except with UPS or Fedex with explicit instructions no signature no delivery.
Keith
 
NEW development today.

AmEx order, shipped to northwest USA. About $500, a NICE order, but we have grown very cautious. Google delivery address---hmmmm, a forwarding service. So, where is it forwarded to? More investigation--Malasia---EXACTLY where the last fraud was committed.

Order canceled by us.
The suggestion to drop AmEx is looking more reasonable every day!!

Leave home without it!!
 
I know it must have gone against the grain to cancel an order.

It's often said that vendors must earn the trust of their customers -- but the reverse is also true. If the person who placed the order wasn't open about where they live, using a forwarding service, etc, they aren't being 100% honest. This sounds like a scam waiting to happen.
 
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