[TowerTalk] Cheesy Credit Card Policies
Larry Lindblom
w0etc@ix.netcom.com
Sat, 20 May 2000 15:07:09 +0000
I think we've slid off of the reflector's focus, but how does the bank eat
it? Possibly in the percentage they charge for processing credit card
transactions and in the interest rate charged to credit card holders. As is
typical in retail,I'm sure the banks initial "mark up" compensates for loss
control. Said another way, IMHO any expense a business incurs comes back out
of the customers pocket.
73 from the land between two rivers.
DE W0ETC
Barry Kutner wrote:
> That's not how it works for my medical office. If the charge is
> submitted and we get an approval number on the credit card
> machine, we get paid. If there's a problem with an approved
> transaction, the bank eats it. Forntunately for us, the issue has
> never arisen...
> 73,
> Barry
>
> On 19 May 00, Guy Olinger, K2AV wrote:
>
> >
> > No, actually it's not the credit card company, it's the merchant who
> > gets stiffed by someone who gets away with a sweet one. You can bet that
> > the credit card company, by some device or another, is NOT the one
> > paying for the loss.
> >
> > Gerald's policy has to do with nothing more than the number of crooks in
> > the world, and the fact that they all sound nice over the phone, or in
> > person wear a nice suit and remind you of your wonderful neighbor back
> > in Iowa. You CAN'T tell the good guys over the phone. You can only tell
> > the good guys from good experience with them, and sometimes not even
> > then.
> >
> > What the simple fact is, that a single fraudulent transaction nails the
> > merchant for the shipping, and the wholesale cost of the unit, plus his
> > cost in handling. This can be as much as the profit for 10 to 20 units.
> > Insurance (ha, ha...) for situations like this for commercial firms is
> > incredible, IF you can get it.
> >
> > If you run a discounting, tight margin operation like Gerald, the sting
> > is all the stiffer.
> >
> > Take some of those stings, and you WILL do something about the losses on
> > the card transactions. Or go out of business.
> >
> > Basically only two choices to deal with them: 1) raise prices to cover
> > the expected level of loss, which means you who go to the company that
> > doesn't hassle about the card, pay a pro-rata (in the price) to cover
> > all the thefts. Or 2) analyze what the patterns are that relate to the
> > credit card fraud, and refuse to get involved.
> >
> > Gerald's prices are still low. He obviously chose option 2). What was
> > that about walking a mile in their shoes...
> >
> > One way (not the only one) the credit card alternate delivery scam
> > works: Scammer gets ahold of a credit card and expiration date that
> > belongs to someone else. He wants to get something off the internet, or
> > over the phone. Obviously you can't have it sent to the billing address
> > of the rightful owner of the card. HOWEVER, particularly these days, you
> > can find a LOT of information about people over the net, including that
> > he's a ham, and can probably work a scam using radio equipment OK, he
> > talks to a fence and finds out what kind of radio equipment can be
> > fenced. Fine. He calls up with a credit card, drops some ham radio talk,
> > including call sign, etc (which he got off QRZ.com) and has it sent to a
> > "work address" arranged by the fence. By the time the transaction is
> > reported by the credit card holder as fraudulent, the unit and the "work
> > address" is long gone.
> >
> > The way one takes care that an alternate destination scam is never used
> > on one's own card is to declare one's OWN alternate destination. No one
> > will be talked into a scam alternate address when the card company's
> > alternate shipping field is already filled with a different address.
> >
> > Disclaimer: No relationship to Texas Towers of any kind except satisfied
> > customer.
> >
> > - - . . . . . . - - . . . . - - . . - . .
> >
> > 73, Guy
> > k2av@contesting.com
> > Apex, NC, USA
> >
> > ----- Original Message -----
> > From: Tom Champlin <w0hh@grapevine.net>
> > To: <towertalk@contesting.com>
> > Sent: Friday, May 19, 2000 7:21 PM
> > Subject: [TowerTalk] Cheesy Credit Card Policies
> >
> >
> > >
> > > I have never had any trouble with T. Tower. However, I did run into
> > the
> > > same cheesy credit card policy here locally. I wanted to buy an
> > antenna
> > > and send it to another address where I wished to erect it. The guy
> > told
> > > me that I had to call the card issuer and notify them where the
> > > merchandise would be. This guy was obviously following VISA's
> > > old-fashioned finance company's policy to the letter. Evidently VISA
> > was
> > > scared to death you would charge something they couldn't come and get!
> > > This was my last credit card purchase from ham dealers. I now use my
> > > debit card or a Check. If it's a big item, like my Alpha, I
> > e-transfer
> > > the money to their bank. With a Visa logo bank debit card, the
> > argument
> > > could be made that it's my money and comes directly from my bank
> > > account.
> > > Most people these days don't have the time to be hassled, especially
> > by
> > > some high interest money lender. Just my opinion, and yes I know what
> >
> > > opinions are like!
> > > 73, Tom W0HH
> > >
> > >
> > > --
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> > >
> >
> >
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>
> --
> Barry Kutner, W2UP Internet: w2up@mindspring.com
> Newtown, PA FRC alternate: barry@w2up.wells.com
>
> --
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