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Chargebacks and Fraud

Please direct all your chargeback related question to security@peek.com
 
What is a chargeback?:
Chargebacks are a way for consumers to dispute a credit card transaction.
A chargeback voids a credit card transaction, withdrawing funds that were previously deposited into the merchant’s bank account and applying credit to the consumer’s credit card statement.
 
Chargebacks differ from traditional refunds in one simple way: rather than contact the business for a refund, the consumer goes over the merchant’s head and asks the bank to forcibly remove funds from the business’s bank account. If the bank feels the cardholder’s request is valid, the funds will be removed from the merchant’s account and returned to the consumer.
 
That's a chargeback.
 
 
How to handle chargebacks:
You have a limited time window, generally 5 days, to present Peek with additional evidence on a charge/fraud dispute. You need to prove that:
1) the cardholder agreed to make the purchase
2) you delivered your service to that same person.
Make sure you present a clear, detailed case with supporting evidence, such as:
1) signed waivers
2) copies of their photo ID
3) pictures from the activity (sometimes customers will upload posts and images to their Facebook pages showing they we participated in your activity)
If you get a lot of chargebacks, you may want to consider additional security measures including the ideas suggested in a section below.
 
I called the customer and they told me they unintentionally issued the chargeback and/or have reversed the chargeback. What should I do?
If a customer claims to have reached out to their bank asking to reverse the chargeback, please have the customer send you an email in which they state the chargeback was issued unintentionally and that they plan to reverse/have already asked their bank to reverse the chargeback. Please send us screenshots of this conversation so that we may add it to your chargeback dispute!
 
What happens after I submit evidence:
If you are able to provide Peek with additional evidence, Peek will submit a dispute on your behalf and attach all your evidence. (Note: Please submit all additional evidence by responding to the chargeback notification sent by security@peek.com).
Peek will submit the chargeback dispute to the Payment Processor who will send it to the customer’s bank. The customer’s bank may take 30-90 days to review your evidence. The customer’s bank may either side with the customer and keep the customer’s money from you, the operator, or they may side with you, and refund you the money.
We will notify you of the status of the chargeback as soon as we have an update from the customer’s bank.
 
I won the chargeback, why is it being deducted from my payouts AGAIN? 
This means that the customer has issued a Pre-Arbitration chargeback (or Arbitration Chargeback). A pre-arbitration happens when a customer contests the result of a chargeback that was ruled in your favor. Think of it is a the customer’s second chance to argue the merchant’s case, a second chargeback. Pre-Arbitration/Arbitration is an option for all Visa and Mastercard customers.
 
We understand how much of an inconvenience this process can be (trust us, it’s a pain for us as well!), but we want to make sure to provide you with all the help and resources possible. Please see below.

Ramping up your security:
There are a few things you can do to prevent chargebacks from happening in the first place:
 
#1: Use your website's domain name in your credit card descriptor so it's easy for customers to recognize your charges. 
 
#2: Highlight your cancellation and refund policies on your website, your Booking Flow and in your booking confirmation emails. Make them crystal clear and hard to miss!
 
#3: Look out for signs of fraud, such as unusually large orders, the use of international cardslots of orders with the same card etc.
 
 
Please direct all your chargeback related question to security@peek.com
 
 
 
Fraud
Fraud is an unfortunate part of running a business and collecting payments from customers. Dealing with fraud is never fun, but it is something that you can take steps to prevent and recognize so you can stop the practice before it hurts your business.
 
Tips to spot potentially fraudulent reservations
·       Inconsistencies in customer details (e.g., email, name, phone number, payment method) across multiple purchases, e.g., seeing the same email address but a different name provided for another payment, seeing the same credit card number but a different name provided for another payment.
·       Multiple reservations with the same name. If your customers are purchasing with the shopping cart, the reservations will have the exact same purchase date and time in the booking history in Peek Pro. Potentially fraudulent bookings could have multiple reservations made at different times over a few hours or days.
·       Unusually large orders (either number of bookings, multiples of bookings for the the same activity, or an expensive dollar amount that just seems out of line with a normal customer)
·       Use of international cards or orders with international shipping addresses
·       Many smaller transactions made with similar or the same card numbers, especially over a short duration
·       Use of obviously or likely-fake information in the transaction (such as fake phone numbers or gibberish email addresses)
·       Any request that you run a charge through manually - fraudsters may make this request in order to have the charge run with your local IP address instead of their own.
 
I think I found a fraudulent booking, what can I do?
·       Consider reaching out to customers making potentially suspicious charges by phone or e-mail to confirm customer and charge details. A phone number that doesn’t belong to the customer or an e-mail that bounces may indicate a fraudulent charge; a nonsensical or evasive answer is, similarly, typically a good indication of potentially fraudulent behavior. (Remember that even phone or email responses do not guarantee that the person responding is the true cardholder.)
·       When speaking to the customer, try to verify that the booking and the credit card used are real. Where did they buy their ticket from? Was it directly from your website, a trusted reseller, or from an unknown person or website? Ask them to bring the credit card and photo ID with a matching name with them to the activity
·       Ask for proof of payment when the customer arrives for the activity. Have them verify the credit card in person along with a photo ID with a matching name. If they don't have the credit card they used to book, cancel and refund that booking and either ask them to pay cash or charge whatever credit card they have available in person
·       We recommend that you issue a full refund as soon as possible for any charge made with a credit card that your review leads you to believe may have been stolen or used without the true cardholder’s authorization, as this will prevent a future chargeback
·       If you're really concerned that you're getting a lot of fraudulent bookings, you can change your activities to have manual confirmations. With manual confirmations, you can look at each booking when it comes in and see if multiple are being purchased within a short time frame, and stop the fraud well before the activity

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