Hello everyone, my husband is a small time trader who also sells online engaging ipay88 as the Payment Gateway system. As usual, he will receive credit card payments through the company website (payment managed by ipay88) and then proceed to deliver the items via courier service or COD.

Then one day, after 5-6 months, the buyer disputed the transaction. Claiming that he did not buy the items. But my husband, upon seeing the authorized transaction then had already delivered the items to the buyer. Now, all ipay88 claim that they can do is ask us to contact the buyer to ask him to cancel the dispute. This is unlikely to happen because, after so long, the buyer is uncontactable as he has changed his hp number. Secondly, it could be a case of misused credit card issue whereby the credit card owner really did not make the purchase. How can the company absolve the responsibility just because the bank has raised a dispute on this? It is a very big amount amounting to thousands. Because of the negligence by ipay, we could potentially lose double the amount that is the cost of the stock and the selling price which ipay88 is demanding from us. We have already furnished receipts (with buyer's signature) as proof of sale and receipt to ipay88. The whole system seems unfair to us as it only protects the consumers and big companies like ipay88. Small time merchants are left in the lurch.

Any sifus can guide us on what we can do in this case? It is very unfair to us, genuine sellers as we engaged ipay88 in trust that they are providing reliable payment gateway solutions. It baffles me that they can authorize the credit card transaction, and dispute it 5-6 months later! We merely perform normal business procedures and got caught in this sticky situation due to them not having stringent procedures to prevent chargebacks like this from occurring. Please guide us, if u have any experience as I'm feeling really helpless and sad right now. Thank you.

This post has been edited by veronicachant: Feb 15 2017, 12:35 PM

This is a very good tip. Thank you for suggesting that we get the details from ipay88.

Hmm if no payment gateway will absorb chargebacks, then it fails to provide merchants with a sense of security. We engaged them in good faith that they allow non-fraudulent transactions to go through. We merely operate by noting that payment has come in, then we proceed to deliver the goods and do business as usual. I would think that they should have more security checks and protocols to protect its merchants from scammers.

According to your Red Flag #1, banks still give the benefit of doubt to the buyers. Merchants who can proof delivery and sales transaction are still in the lurch because then the buyers claim that it wasn't an authorized transaction.

Actually it's quite obvious that it was an intentional scam but it only surfaced after 6 months (which is well within their allowable period) but sadly, merchant has already incurred all the costs and could face a double loss. It's really unfair for ipay88 to ask us to bear the loss of the cost as they were the ones who approved the transactions and credited the money to our bank account. Hopefully, we can fight this case and win it.

This is a good point. Thank you for your advise.

If credit card is chargedback in Lazada and 11street they wouldn't force their merchants to bear the loss unlike payment gateways like MOL and ipay88?

Thanks. Hope this can be a good point of contention.

But then again, some payment websites like Groupon whereby the credit card info is saved then no ECC SMS is required. Have encountered before where I thought that I would need the SMS Code but none was received. Nevertheless, I should go get all the info you pointed out there from ipay88. Never thought of that before. I do believe the real owner is the scammer or they work in a group. Thank you again for pointing this out as we were always thinking of defending ourselves by proving the authenticity of the transaction instead of questioning them back. Thank you.

Thank you. That is more reassuring.

In this case, the gateway providers should step up and bear some risk instead of merely acting as an "independent" intermediary platform for transactions only.
In case you know of any gateway providers besides ipay88 that would bear the risk of credit card fraud, please let me know. Thank you.

Forummer yusiang above pointed out that Lazada will bear the cost. Hmm.

Now, we awaiting further investigations. Really hope that they won't pass on the risk to us. Besides it being a matter of principle, this amount is also significant to a small time trader like us as compared to the big companies.

Noted on the info of the ECC code. This could be an interesting point to back us, the small time merchants. Thank you.

We have the customer's name etc. But handphone for COD is uncontactable. Feels like that every part try to wash hands off because of the scammer.

Just to provide a closure and update, my case has been resolved with justice being served and to our favour. Thank you.

Hi jack2 and everyone who has provided me with valid points and moral strength to fight this case, we are very pleased to mention that we have been provided with a favorable closure. After months of investigation, the merchant has credited the money back into our account. Thank you so much to everyone involved.

Actually, we just emailed to the merchant as per forumer's advise here to question back on the details of transaction etc. Then after months of waiting, the amount was debited back to us. We were not informed of the investigation details or outcome from their side. Thanks.

We hope so too. Hopefully, the laws will tighten and protect genuine merchants in the future as well.