The Next GIG
Credit Card Scam Targets Flooring Dealers
C
redit card companies are reporting that over the past several months, they have seen a general rise in fraud. Flooring dealers are definitely not being spared (and in some cases,
are being specifically targeted) as victims, with an uptick of reports of recent instances. There are several different ways this is happening. Being aware of the common scams can help you protect yourself. You’re at risk not only because of the increase in the fraud itself, but to compound the difficulty, the credit card companies, seeing so many cases of fraud, may be less likely to return your money due to their own self-preservation instincts.
Chargeback Scams Chad Ogden
One credit card processing company says that ever since COVID hit, they are seeing a sharp
QFloors President/CEO
increase in chargebacks in general. Compounding the general rise in chargebacks, dishonest
Chad Ogden is the CEO/
people know that if you swipe their card (and do not have a processor that will take chip or
President and developer
tap technology), they can dispute the charge, and the merchant has no recourse. So what’s
of QFloors flooring soft-
happening is that people will receive their flooring, and then dispute the charge for various
ware. He grew up in the
made up reasons. Because swipe technology is outdated and not secure, the credit card
flooring industry, has a BS
companies are holding the merchant responsible. Unfortunately, scammers have figured that
in Computer Engineering,
out and are taking full advantage.
and worked many years in the technology field before
How can you protect yourself?
coming back to his flooring roots. He currently serves as the Secretariat of the fcB2B committee and is a widely recognized
1. First, upgrade to credit card processors with tap and chip technologies. It gives you more recourse for restitution or to challenge chargebacks. 2. Require a signature upon delivery, installation, and purchase, confirming that they received the product, it was in good condition, they approve of the installation, etc.
industry leader in floor covering technology.
Stolen Credit Card Scams
To contact him, email chad@qprosoftware.com
or call 801-563-0140.
There is another scam that is trending in the industry. It goes something like this: A potential customer will call and order product. They will give you a credit card over the phone that will process just fine, and then someone else will pick up the product a day or two later. Sometime later, the credit card company will come back and tell you that you took a stolen credit card and charge you back for the purchase. Because you took the stolen card, you have no recourse with the processor, nor with the bank, nor with Visa/Amex. The dealer is the one stuck with the loss. We recently had a dealer who lost $13,000 in this sophisticated scam. Many others throughout the industry have reported similar victimizations.
64 Premier Flooring Retailer | Digital 2 2020
