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Refunding a "Fraudulent" Credit Card

by Canada
12 replies
I had someone purchase my software via Clickbank, then later (after a couple of emails back and forth) request a refund, as they were unable to get it working on their computer.

I put through the refund request via Clickbank, and shortly afterward got an email from the purchaser, saying:

"PS: Somebody committed fraud with the Credit Card that I used for this product, and the credit card was canceled, for that reason you won't credit that card, please send me a check at my name:...."

Obviously, I'm not going to send them a check. The refund was just confimed by Clickbank today, and I got another email from the purchaser:

"Because the credit card originally used for this purchase was reported with a fraudulent transaction and the account was closed, the credit won't go through. What I have to do in order to get my money back?"

Now, I'm not fully versed on credit card processing, but if a credit card is cancelled, and then a purchase is refunded, wouldn't it still process?

If not, then how do I (safely) refund this customer, or do I leave that to Clickbank to resolve, and ignore him?
#card #credit #fraudulent #refunding
  • Profile picture of the author J Bold
    Hmmm, sounds exaclty like one of those Nigerian scams (no offense to the authentic Nigerian warriors, I saw it on TV!).

    Anyway, if you want to pursue it, best course of action is to consult the credit card company about it, or just let it go.
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  • Profile picture of the author tj
    The owner of the CC still will have an account with the CC Company, so if that amount of the purchase will be credited to the old CC Account - from there s/he can transfer it to the new account / CC. I would not send a check, otherwise you maybe will lose money if it is a scam.

    Timo
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    • Profile picture of the author Kay King
      The refund was just confimed by Clickbank today
      If it's on clickbank - forward the email to CB and let them deal with it. If they keep asking for money - tell them CB is handling the refund and to contact CB.
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  • Profile picture of the author Canada
    Thanks guys. That's what I thought, but I'd never dealt with it before.
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  • Profile picture of the author seasoned
    Originally Posted by Canada View Post

    I had someone purchase my software via Clickbank, then later (after a couple of emails back and forth) request a refund, as they were unable to get it working on their computer.

    I put through the refund request via Clickbank, and shortly afterward got an email from the purchaser, saying:

    "PS: Somebody committed fraud with the Credit Card that I used for this product, and the credit card was canceled, for that reason you won't credit that card, please send me a check at my name:...."

    Obviously, I'm not going to send them a check. The refund was just confimed by Clickbank today, and I got another email from the purchaser:

    "Because the credit card originally used for this purchase was reported with a fraudulent transaction and the account was closed, the credit won't go through. What I have to do in order to get my money back?"

    Now, I'm not fully versed on credit card processing, but if a credit card is cancelled, and then a purchase is refunded, wouldn't it still process?

    If not, then how do I (safely) refund this customer, or do I leave that to Clickbank to resolve, and ignore him?
    Do you know what *I* would tell them? WOW! I never heard about that before! Since they "canceled your credit card". WHY do you want a refund? There is NOTHING for you to pay, so you got the item FREE!

    When they cancel a credit card, they cancel a credit CARD!!!!! The ACCOUNT stays open to process committed debts, accept refunds, and be paid by the customer! You do NOT really refund the credit CARD, you refund the credit ACCOUNT! The card only acts as a vehicle to pass account information.

    BTW NEVER NEVER NEVER credit a credit card with another financial vehicle. When they ask for a chargeback, the PROCESSOR issues the refund, as required by law. If you refund the money ANOTHER way, they can get twice the money back.

    Steve
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  • Profile picture of the author Raydal
    That's a plain trick. Even a store wouldn't refund you with cash if
    you bought the returned item with a credit card. That's pretty
    standard practice.

    What will they think of next?

    -Ray Edwards
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  • Profile picture of the author kindsvater
    It's not your refund to make and I am extremely suspicious of this - it sounds like a scam and the credit card has been canceled due to fraud issues.

    But for starters, ClickBank sold the product, not you. The way ClickBank purports to set up its system is that you are a wholesaler offering products to ClickBank and ClickBank makes the retail sale to customers. If there is sales tax to be paid, ClickBank pays it, not you.

    (See ClickBank's Retail and Wholesale Pricing discussion at Accounting Policy - ClickBank )

    If there is a refund to be made it is by ClickBank.
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    • Profile picture of the author rlrlphs
      OK you really need to put on your products that if it is not working there is no refund back because some of the purchasers used to tell lies that your product isn't working just to get their money back. That is my opinion.
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      • Profile picture of the author Michael Taylor
        Originally Posted by rlrlphs View Post

        OK you really need to put on your products that if it is not working there is no refund back because some of the purchasers used to tell lies that your product isn't working just to get their money back. That is my opinion.
        You can't do that with ClickBank. You have to offer a money back guarantee. And even if you don't, they'll still refund, since they're the one actually making the sale.

        And even if you don't use ClickBank, you should offer a money back guarantee.
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  • Profile picture of the author Johnathan
    Tell them to wait a couple days, and they should see a refund processed.

    CC companies usually use transaction numbers, so even if they change numbers, the transaction number is simply associated with the new account. Otherwise, it would be very easy for say someone to make a $1,000 purchase, cancel their card, and the vendor be out $1,000.

    This customer is either not aware of what is going on, or is trying to 'scam' you. I would say it is more likely the former, they just don't know how things work.

    So tell them to relax, and they should see a refund.
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  • Profile picture of the author Canada
    Yeah, with Clickbank, they don't need a reason. I don't know if this guy is scamming -- we did go back and forth with emails to try to get it working, so he put alot of effort in to get $30 bucks. Regardless, I do find it intriguing the different stories some people come up with
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  • Profile picture of the author snowy100
    Sounds pretty dodgy to me, Clickbank seem to be giving refunds left and right and center lately in record speed. Let them take care of it since you are paying them for the privilege of selling your product

    These people need to start getting more creative with their dirty tricks!
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