Paymate’s Risk Management protects Buyers and Sellers.
Paymate operates sophisticated risk management systems to protect buyers and sellers by identifying and managing risky transactions. These include fraudulent purchases by buyers using credit cards that they’re not authorised to use, as well as fraudulent sales by sellers of goods and services that they do not intend to deliver.
We conduct these risk assessments before we submit a payment to our bank for authorisation. The buyer’s bank may also decline a payment for a variety of reasons, including insufficient funds in the account.
By accepting the payment, a seller accepts liability for any loss in relation to that payment, including without limitation liability for incorrect, negligent or unlawful payments.
If we identify the transaction as risky, we may contact the buyer and seller for more information or simply reject the transaction - this is for your own protection. We will also reject the transaction if the buyer’s bank declines the payment.
How Sellers can reduce risks
Paymate has implemented several measures to help prevent credit card fraud and chargebacks, but the seller/merchant is ultimately responsible for accepting each credit card transaction. However by using common sense and following a few simple guidelines, Paymate sellers can minimise their risk.
Fraudsters can try to purchase goods using stolen credit cards or stolen credit card account numbers. To minimise your risk you need to be on the lookout for trading characteristics that may indicate potential fraud. While no single characteristic necessarily indicates fraud, a combination of a number of these warning signs might point to a transaction that may be fraudulent.
Safety guidelines and tips:
- Check the consistency of the shipping address. Fraudsters will sometimes inadvertently mix up the street, city, and country fields. Before shipping, check that these address fields and the country are consistent.
- Check the overseas local market. Be cautious of orders shipped to a country where the goods would be readily available in the local market.
- Unknown or new buyer. Be cautious of buyers that you have not previously dealt with, and check the history of the buyer on eBay.
- Unusual bidding activity. Because fraudulent buyers are not as concerned about price as genuine buyers, they will often bid very aggressively to guarantee they win.
- High value or easily resold items. Fraudulent buyers tend to purchase items that they can resell for high dollar values. Be extra vigilant if your transactions involve big-ticket items, particularly computers, computer equipment, software, electronics, home entertainment equipment, jewellery, watches, coins, collectibles, mobile phones, or other similar goods.
- Multiple item quantities. As these items are usually intended for resale, having more of them increases the fraudster's profits. Moreover, because they may be using stolen cards or account numbers that have a limited life span, fraudsters need to maximise the size of their purchase.
- Orders shipped "rush" or "overnight". Fraudsters want fraudulently obtained items in their hands as soon as possible for quick resale, and are not concerned about extra delivery charges.
- Credit card authorisation. Be cautious of orders placed where the credit card authorisation is declined and a second card is readily available.
- Orders placed not on their own card. Be cautious of orders placed where the initiator of the order admits it is not their card being used.
Preventing Other Charge Backs
Remember that the credit card schemes (Visa, MasterCard) also protect buyers by allowing a ‘charge-back’ for goods not received or ‘goods not as described’. The following tips can help you avoid other non-fraud-related chargebacks and ensure a smooth transaction with your buyer:
- Ensure a fair and accurate description of the item(s) you are selling. Disputes can occur when purchased goods do not match the buyer's expectations. By providing a clear description of the item(s) you are offering and the actual condition of the item(s), you can avoid many misunderstandings.
- When sending an invoice clearly state your return policy. Buyers will generally abide by the return policy stated in your invoice. (If you do not allow returns, specifically say so). A professional-looking return policy may increase buyer trust. In addition, if the buyer disputes the charge with the credit card issuer, Paymate can more effectively advocate on your behalf if you clearly stated your return policy.
- Retain proof of shipment with a tracking number and with insurance. Shipping with a tracking number and with insurance can help resolve disputes in cases where the buyer claims non-receipt of goods or having received a broken item.
- Respond promptly to buyer questions.Try to be as responsive as possible to buyers. Buyers will sometimes contact the credit card issuer directly if you cannot be reached or if you do not respond to their questions.