oys started this topic @ 11:00 on 09/01/2006
Has anyone looked into the credit card implications of third party transactions on the internet? More and more business services may require to use their own customers' credit cards to make purchases on their behalf and with their written permission. I have found conflicting reports from the major credit card issuing banks on this subject. People I spoke to in Barclays and Lloyds TSB said provided that you were an authorised credit card merchant, there was no problem with this. Streamline (NatWest/RBS) merchant services said the opposite and that it would be considered as fraud. Any Comments Please
RE: Third Party Credit Card Transactions on the Internet
mattcaulfield | 09/01/2006 11:28 AM
Ive not looked into this personally but under what circumstances would you need to use a customers card?
Surely it would be much simpler to purchase the said items on your own business card and then just get the customer to pay you?
I would have thought the only way you could use someone elses card (even with written permission) is if it were a business credit card and they were a registered name on the card with you.
RE: RE: Third Party Credit Card Transactions on the Internet
oys | 13/01/2006 02:43 PM
Thanks for the input on this. You may wish to use the customer's credit card for two reasons.
First, as the customer would be making the sales transaction direct with the supplier (via our business), any warranties, guarantees or returns (if applicable) would be solely between them, and there would be no liability on the business providing the search service.
Second, using a corporate card and then re-charging the customer on their credit card would incur merchant commission charges to the business that would not be desirable.
Any other ideas on why this shouldn't be done? Is it very different to CNP (cardholder not present) transactions?
RE: Third Party Credit Card Transactions on the Internet
cstretch | 13/03/2006 10:48 PM
I am credit card consultant. You can't ever do this. It is not possible. Using someone else card details to make payments is fraud, even with permission. sorry.
what you want to do requires referral agreements with registered shops. that's how all search groups - kelkoo, yahoo, etc do it - and you would pass the customer to them.
CNP is the customer buying from you but not present. You buying from someone else using the customer's credit card details - yes, that's totally different.
If you're really serious about this it would be an interesting thing to work out how you could do it, but I could only imagine via specific agreements with suppliers who would offer you a trade account.
