I recently noticed that Ferrit are promoting that they are now accepting credit cards from the USA, UK and Australia. This sounds like a cool idea — its a good way to get a few extra sales from ex-pat Kiwi’s etc. More sales = good.
But there is a down side … Ferrit sellers have no protection from credit card fraud. So how’s that going to work?
The NZ Herald posted an article on Sunday about the “huge jump” in credit card fraud in New Zealand. Articles like this represent the tip of the iceberg of the real problem — most online fraud committed in New Zealand is done with a credit cards stolen from overseas.
There’s no doubting that Credit card fraud is a major issue for New Zealand online stores. It’s something we have to be very very vigilant about.
To make life a little more difficult, there’s very little protection against fraud for the local online stores — there’s no Card Security Code and no Address Verification System. Actually, New Zealand online stores are one of the least protected species on the planet!
But the news is even worse for sellers on Ferrit. They don’t even get access to the credit card numbers used on Ferrit. Yet they are 100% responsible for any chargebacks incurred. That’s a risky proposition.
The Ferrit sellers are fully reliant on Ferrit filtering out the fraud (hopefully Ferrit have hired more people to do this). The Ferrit sellers are very much flying blind.
So with Ferrit now accepting credit cards from the USA, UK and Australia, the question has to be asked…
Did Ferrit just open a can of worms for their sellers?