Dean Piazza of HomeGymEquipment.com.au told My Business that his company suffered multiple chargebacks earlier this year, which totalled around $10,000.
“We are a small business selling fitness equipment and treadmills online; we have had five chargebacks totalling approx $10,000 this year and it’s sending us out of business,” he said.
“[In] the latest incident, a customer ordered a treadmill online that was delivered to his address in Seven Hills, Sydney.
“He signed for it and he used a friend’s card or stolen card to do this.”
Despite having a signed delivery form from the courier and all of the order details, Mr Piazza said his bank still imposed the chargeback on him.
“I have told the Westpac bank all the details, but they are not interested and simply said best to go to the house to try and get the goods back or go to the police,” he said.
“I sent all documents to Westpac to prove he actually lives there and was delivered there, but they are simply not interested and just debited our business account for $1,700.”
My Business has heard similar stories from other SMEs, who are angry that they are being left to foot the bill for card fraud.
A spokesperson for Westpac said the bank is looking into the issue and would seek to provide a response.
Mr Piazza said things need to change to enable SMEs to compete effectively in the online marketplace without being burdened with the cost of delivery fraud.
“It’s so easy for people to now order online – use your friends card, and then [have goods] delivered to your own house and then just say ‘it wasn’t me’,” he said.
“The credit card charge system needs to change, as small business can’t survive with customers now basically stealing our [products].”
Have you experienced this type of delivery fraud? Do you have strategies in place to help minimise such activity when making customer deliveries? Share your thoughts below!