Accepting payments online means that we don’t get to actually see the client, or “read” the magnetic strip of their Card. Virtually anyone can be on the other side of the internet, using whoever’s details.
K– Know Y– your C– customer
KYC is a set of documents meant to verify your client’s identity.
This is one main reason why you should collect these documents.
Another is to protect you in cases where there is any risk-issue.
Our risk department checks the data coming in every day, and locates different risk issues, on which we send alerts via email. In most cases the KYC can help you alleviate the risk issue and solve the case.
Another situation where KYC can assist is with chargebacks. While this set of documents is not enough to fight the chargeback by itself, it does support your case that you know the client, and the client knows you.
We recommend that you collect this set of documents as soon as the client has deposited with you for the first time, and before allowing the client to trade with this deposit.
If the client refuses to provide these documents, you would be better off refunding them and not working with them.
This set of documents include:
As an added value you can ask your client to photo himself holding the ID. This is on top of the ID photocopy, not instead.
Terms and conditions
Most sites allow the client to tick a box saying he read and agrees with the T&C, while most of us know that they tick that box without bothering to actually read it.
To make a stronger case, make sure the client signs a document stating he has read and agreed to your terms and conditions, and that he understands the risks involved with trading with you.
If possible, you want this to be an actual signature, not electronic.
This is also a document you should add to your disputes in case of CBs.
Letter of confirmation on every transaction
To better protect yourselves against CBs where the client claims he does not recognize or did not authorize the transaction, you want to have him sign on each and every transaction he deposited with you.
You can have a form ready, with a table of his transactions, but make sure he signs next to each transaction.
A general form stating he approves all his transactions with you will not support your cases.
A form where the transactions show on one page and the client’s signature in on the other – will not be able to be used as a valid protection against CBs.
A form that has a list of transactions, with the client’s signature below will not be accepted, and claim will be that you might add transactions to that list after he signed.
If your client refuses to sign – this might indicate a fraudulent client.
It’s generally known that protecting yourselves against “service” chargebacks is very hard.
How can you prove that the client actually received the service? That it was “as described”?
This is when you need to get creative.
We suggest that you call your clients periodically. Record all calls, and in them ask your clients a series of questions regarding the service. Are they happy with the service they received? Was it what they expected to receive? Is there anything else you can do to increase their satisfaction with you as a merchant and with your services?
These are just a few suggestions that MAY help. Be creative and make a list of questions that will cover the issue of service.
There is no guarantee that even with these recorded calls you can win Service CBs, but we see only added value to these phone calls.
The client will feel important and valued, you will have the chance to right some wrongs if the client is unhappy with you, and knowing there is a communication with you might cause your client to reach out to you in future issues instead of processing a CB.
If you think of other creative ideas you believe may help, we will appreciate you sharing it with us.
Checking the use of cards
You need to make sure that only one person is using a specific card, and that he is indeed the card owner. Collecting the KYC will make this check an easy task.
If you have a case where a person who is NOT the cardholder used the card, you should have a written and signed approval from the cardholder allowing this individual the use of their card.
Potential warning signs of fraud
This article was written by admin_algocharge