Negative impacts of stolen credit card customers on a business

[Augusta]

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Stolen Credit Card Customers are a huge risk to a business as such it is always good to watch out for such customers. Stolen Credit Card Customers are customers that would buy a product or service from a company using stolen credit card credentials.

When they do this, it impact negatively on the business especially is if the original cardholder requests a chargeback:


The business will go in for it as the following might need to be carried out by the business


Refunds
The business might need to refund the price to the original card. This will be a financial loss to the business as the money might not be recouped.

Lose an item

There will be lose of the item or items that were sold out to the fraudster. So this here is that the business is losing money.

Reputation in doubt

You would now have your reputation in doubt as your business reputation suffers. And this is on what you know nothing about

Extra fees incurred
In the process of paying back the money , You may also need to pay both the admin and extra processing fees

increased chargebsck rate

Your chargeback rate with the bank increases. So you are going through all of this for a bad customer