This is the seventh part of How to Do Carding Series. You can find about Part -1 (Introduction) , Part 2- (How does carding works here) , Part 3 ( How Level 3 Carding Works) and Part 4 (How Account Fraud Happens). In our previous part we talked about what is Drops. In this article we will discuss about chargebacks.
A recurring question on the forums is, when the card is declared stolen and the transaction is disputed because of fraud, who takes the hit?
In the case of a card-present transaction using chip & PIN in countries where they use that technology, the bank takes the hit when the transaction is declared fraudulent.
In all other cases, it’s the unfortunate merchant that takes the entire loss. So if you card Newegg for $2000, they pay about $1600 for the merchandise that they send you, and they are short the money because you carded them, so they have to make 6 similar big orders without problems to cover that loss. You now undertand why they make verifications and don’t want to be carded.
Some big merchants like TigerDirect and Newegg will just eat the loss and assume that they failed at fraud detection, but smaller merchants will make a formal complaint at their police department. Now, is the police going to investigate? It depends.
If a merchant reports a $200 loss for an order shipped out of state using a stolen credit card, there is a 99% chance that the police will not even open an investigation for that. However if they report a $3000 loss using a stolen card from the same state and shipped in a nearby city, LE (Law Enforcement) might move for that.
It also depends on the volume of complaints, the amount of loss compared to the size of the city, and whether there is an obvious pattern between fraud complaints or not. You should try to make your orders not linkable to each other, and use your common sense to avoid creating a pattern that might trigger an investigation.
It also depends if the cardholder himself decides to make a complaint or not. As long as they get refunded by their bank (which they do), chances are that they will not care and just forget all that. But some more mad people can decide to make a police report for identity theft. Again, there will be an investigation if there is an obvious pattern. It all depends which city you are talking about.
So remember, when you card a website, they take the loss in case of a chargeback, so they want to protect themselves. You have to be smart and ask yourself, if I were in the shoes of the website owner, how would I catch fraudsters?
Sometimes, you might receive an e-mail from the store asking you to provide more information about the chargeback, such as authorization forms or documents. Just ignore that e- mail. Do not become cocky and answer “I got you!” because it could be the difference between an investigation or not. Keep it dead.
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