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How payment button and link scams work

what is a link or button Payment? Selling goods in a store meant asking the customer for their credit or debit card, ID and passing it to some type of CHECKED IN. This device issues a ticket that the customer signs on paper in normal times.

Now imagine that this place no longer exists, and turned virtual. Being virtual, you can now sell nationwide and even globally. Traditional merchants during the pandemic have transformed their operations and physical stores into virtual storesand have published all their articles on platforms such as Mercado Libre, Facebook Marketplace and others.

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And these traditional merchants were joined by home contractors who started selling their creations virtually and with little experience. At the same time, once the customer has been captured and the sale has been agreed, either through Instagram, Facebook or their own store, they must close payment

The challenge became to bring this company POSNET to any part of the country to process plastic (debit or credit). Payment processors such as PRISMA, Mercado Pago and others have created products to meet this need.

So, the seller enters the page of these payment methods, selects “create a payment link», stipulates the value of the property, whether it is creditor or debtor, the amount of the installments agreed with the buyer and a description. This generates a link that the seller sends to the customer by copying and pasting on your WhatsApp or Facebook messenger and even by mail.

Using a checkout button in online sales can be dangerous (Picture: TN)

The customer receives and clicks on the link they received from the seller and an interaction from the payment company is displayed which leaves them fill in the card, expiration and security code fields. Basically fulfilling the role of what used to be the traditional POSNET that was at the local counter. Once the transaction is approved, the seller receives the “approved” and sends the goods.

So far it sounds like a fairy tale, but not all transactions end well. The massification of electronic media and the little investment in education about these products, added to an advertisement that highlights questionable values ​​on the part of banks, cause harm to new sellers that add to the ecosystem.

Even if the payment processor deposited the money into the seller’s bank account after approving a transaction, this can withdraw money without asking permission leaving the bank account overdrawn. In other words, anyone with a credit card (even a stolen one) can make this purchase. And then the real owner can overlook the purchase if it was a scam. This is to do a chargeback.

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A chargeback occurs, for example, when we are unaware of an expense on our credit card statement. This triggers an action in which the payment processor withdraw from the company’s bank account the sum that we did not know.

The company must prove that it was a legitimate sale: merchants asked about online transactions believe that Between 5% and 10% of sales disappear and cannot be recovered. Stolen money produces the ambiguity of an old system.

The requirements at the time of delivery of the goods

According to the contract signed by the merchant, at the time of delivering the goods when purchasing this style, certain rules must be respected:

  • Do not deliver the goods to persons outside the consignment address, nor to minors.
  • Do not deliver the goods to a place other than the consignment address, nor allow the recipient to collect the goods from the addresses of the logistics or transport services, nor change the delivery address after obtaining authorizations.
The customer must enter the card number, the expiry date and its security code (Photo: TN)
The customer must enter the card number, the expiry date and its security code (Photo: TN)

What does it mean? What I can deliver to another person who is not the cardholder but who is of legal age at this address.

What the contract does not say, and in this ambiguity lies the vulnerability of the system, is that if the cardholder with the DNI is not present and the payment is unknown, a chargeback will occur that cannot not be cancelled.

Do the couriers rigorously verify the cardholder?

The only way to eliminate the risk of chargebacks is verify the cardholder with the DNI and the plastic to the registered addressalthough it is not said in the contracts or in the advertisements of the banks and that it is quite ambiguous during the request or on the help pages of the banks, it is the reality.

Due to the pandemic and the digitalization of the economy, more and more players are starting businesses from home, but They don’t know the details when selling, thus losing their capital.

In 2020, the Mendoza cassation chamber (Matilde Ballerini, Maria L. de Alonzo) ruled in favor of a trader victim of this type of scam, but it was granted eight years later, when the product had already bankrupt. of fraud.

The risk involved in using the system cannot and should not be placed on the users or the merchants, both of whom are necessary to complete the operation which benefits both co-defendants, who receive tariffs and commissions from both the owner and the member merchant.