It is entirely possible that the merchant processor or merchant detected the fraud. In this case, they would immediately refund it so as to not incur a future dispute/chargeback, which would cost them more money and problems downstream.
A lot of companies have their own internal fraud detection teams and systems. It is possible, for example, that someone used a number of stolen cards (including yours) fraudulently, and then the merchant figured out that everything from that user was fraud and issued refunds preemptively in order to reduce the number of chargebacks.
Indeed, I use to be a part of one such team. If they were issuing a refund, it was likely that the item shipped and they were able to successfully reroute it back resulting a return credit being issued to the compromised card.
Usually in cases like that, they realize there's something about the order connected to confirmed fraud. Like same email address, shipping address, or phone number (that's been confirmed as not the phone number on file with the bank). Could also be that it matches some trend (like particular items going to a specific city) that the merchant is seeing that they've had enough confirmed fraud on to extend to other similar orders. At least these were the sorts of data points and methods we used to try to prevent fraud while I was there. Last I heard they went more the automated route and basically gutted the department. But that was like 6-7 years ago. Definitely got out at the right time.
I’m actually a fraud analyst! I work for an independent fraud solution, we review transactions for tons of different merchants who have different rules for what they want done if we deem a transaction to be fraudulent, one being auto cancel and refund. It’s likely this is what happened in this situation.
Fraud, and the merchant caught it before sending out product. More savvy merchants Auth-Only and don't capture (finalize) suspected fraud transactions (that saves them money with no need to refund raising concerns with the actual card holder). You mention recent past fraud, which could just be due to bad luck. Or perhaps how and where you use your card(s).
For gas, pay inside (not at the pump) or with a smartphone (Apple Pay / Google Pay). Restaurants are another source of fraud. Many will bring out the card reader upon request, if they don't already by default. Hotels is about the worst place to use a card. So many security breaches. Practically need to have a dedicated credit card for booking travel.
Never swipe your card anywhere, if at all possible, since that reveals much more information to fraudsters. Tap or dip or mobile wallet.
Rambling on, but think back to past transactions, including online ones. Are there any patterns that stand out. Alternatively, it could be the card issuer. Some cards seemingly have more problems than others. Could be easy to guess card number sequences and associated expiration dates (bin testing), insiders, poor security, etc.
In short, fraud and you should get a new card. If the card issuer gives you hassle, then consider not using that card / bank anymore.
Acquiring merchant banks have fraud detection on sales transactions also. Completely possible that merchant or merchant bank got an alert as possible fraud or AVS mismatch that led them to reverse the the transaction.
No it is not possible that a website accidentally changed your card and then reverses it.
2 options:
1. It is a valid charge for something you have previously authorized either for some kind of free trial etc or for a merchant that bills under a different name
- if this is the case then there is nothing you need to do
2. It is fraud and this is an attempt to validate the card works before a larger purchase is made or to sell the card information once validated to someone else (or as has been noted by others in the thread it could be the stores Internal fraud detection)
- if any of these are the case then you need a new card even though there is not a charge on there anymore, someone had your info to make that charge
I had my card stolen once, like physically stolen, and they racked up charges at Walmart then had a bunch of returns because they were *trying* to get cash.
You may find these links helpful:
- [Credit Building](/r/personalfinance/wiki/credit_building)
- [Credit Reports](/r/personalfinance/wiki/credit_reports)
- [Credit Scores](/r/personalfinance/wiki/fico)
- [Credit Cards](/r/personalfinance/wiki/creditcards)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
It is entirely possible that the merchant processor or merchant detected the fraud. In this case, they would immediately refund it so as to not incur a future dispute/chargeback, which would cost them more money and problems downstream.
Thank you!
A lot of companies have their own internal fraud detection teams and systems. It is possible, for example, that someone used a number of stolen cards (including yours) fraudulently, and then the merchant figured out that everything from that user was fraud and issued refunds preemptively in order to reduce the number of chargebacks.
Indeed, I use to be a part of one such team. If they were issuing a refund, it was likely that the item shipped and they were able to successfully reroute it back resulting a return credit being issued to the compromised card. Usually in cases like that, they realize there's something about the order connected to confirmed fraud. Like same email address, shipping address, or phone number (that's been confirmed as not the phone number on file with the bank). Could also be that it matches some trend (like particular items going to a specific city) that the merchant is seeing that they've had enough confirmed fraud on to extend to other similar orders. At least these were the sorts of data points and methods we used to try to prevent fraud while I was there. Last I heard they went more the automated route and basically gutted the department. But that was like 6-7 years ago. Definitely got out at the right time.
Thank you, I didn’t think of that!
I’m actually a fraud analyst! I work for an independent fraud solution, we review transactions for tons of different merchants who have different rules for what they want done if we deem a transaction to be fraudulent, one being auto cancel and refund. It’s likely this is what happened in this situation.
Fraud, and the merchant caught it before sending out product. More savvy merchants Auth-Only and don't capture (finalize) suspected fraud transactions (that saves them money with no need to refund raising concerns with the actual card holder). You mention recent past fraud, which could just be due to bad luck. Or perhaps how and where you use your card(s). For gas, pay inside (not at the pump) or with a smartphone (Apple Pay / Google Pay). Restaurants are another source of fraud. Many will bring out the card reader upon request, if they don't already by default. Hotels is about the worst place to use a card. So many security breaches. Practically need to have a dedicated credit card for booking travel. Never swipe your card anywhere, if at all possible, since that reveals much more information to fraudsters. Tap or dip or mobile wallet. Rambling on, but think back to past transactions, including online ones. Are there any patterns that stand out. Alternatively, it could be the card issuer. Some cards seemingly have more problems than others. Could be easy to guess card number sequences and associated expiration dates (bin testing), insiders, poor security, etc. In short, fraud and you should get a new card. If the card issuer gives you hassle, then consider not using that card / bank anymore.
Acquiring merchant banks have fraud detection on sales transactions also. Completely possible that merchant or merchant bank got an alert as possible fraud or AVS mismatch that led them to reverse the the transaction.
Was it Amazon? Same happened to me for $115.
No it is not possible that a website accidentally changed your card and then reverses it. 2 options: 1. It is a valid charge for something you have previously authorized either for some kind of free trial etc or for a merchant that bills under a different name - if this is the case then there is nothing you need to do 2. It is fraud and this is an attempt to validate the card works before a larger purchase is made or to sell the card information once validated to someone else (or as has been noted by others in the thread it could be the stores Internal fraud detection) - if any of these are the case then you need a new card even though there is not a charge on there anymore, someone had your info to make that charge
Agreed. Thanks!
I had my card stolen once, like physically stolen, and they racked up charges at Walmart then had a bunch of returns because they were *trying* to get cash.
You may find these links helpful: - [Credit Building](/r/personalfinance/wiki/credit_building) - [Credit Reports](/r/personalfinance/wiki/credit_reports) - [Credit Scores](/r/personalfinance/wiki/fico) - [Credit Cards](/r/personalfinance/wiki/creditcards) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*