Purpose

To minimize chargebacks and protect both the customer and the business when a customer reports that their credit card was stolen or used without authorization.

1. Verify the Request

• Confirm that the request is coming from the customer associated with the order.
• Review the order details and payment information.
• Check for any signs of fraud or suspicious activity.

2. Check Order Status

If the order has not shipped:

• Cancel the order immediately.
• Process a full refund to the original payment method.

If the order has already shipped:

• Attempt to intercept or cancel the shipment if possible.
• If interception is not possible, escalate the case to management for review before issuing a refund.

3. Process the Refund

• Refund the full amount through the payment processor.
• Document the refund transaction ID and date.

4. Advise the Customer

Inform the customer to:

• Contact their bank or card issuer immediately.
• Report the card as compromised or stolen.
• Request that the card be blocked and replaced.
• Review recent transactions for any unauthorized charges.

5. Document the Case

Record the following:

• Customer’s report of the stolen card.
• Order number.
• Refund details.
• Any communication related to the case.

Why We Refund Proactively

When a stolen card is reported before a chargeback is filed, issuing a refund can:

• Reduce the likelihood of a chargeback.
• Avoid chargeback fees.
• Protect the store’s chargeback ratio and merchant account standing.
• Improve customer experience.

Sample Customer Response

Thank you for letting us know. We have canceled the order and processed a full refund to the original payment method.

We recommend contacting your bank or card issuer as soon as possible to report the card as compromised and request a replacement card. They can also help review any unauthorized transactions on your account.

Please let us know if you need any additional information regarding the refund.