The Digital Age: Opportunities & Challenges
The internet has transformed the way we do business, bringing both opportunities and challenges.
While businesses thrive in the digital world, they also face increasing risks from credit card fraud, identity theft, and high-risk customers.
High-Risk Customers: Definition & Reporting Guidelines
| High-Risk Behavior | Impact on Seller | Recommended Action |
|---|---|---|
| Unjustifiable chargebacks – Customer disputes a legitimate transaction without valid reason. | Financial Loss | Report |
| Refund abuse – Customer gets a refund but does not return the product. | Financial Loss | Report |
| Fee refusal – Customer refuses to pay required fees outlined in merchant Terms & Conditions. | Financial Loss | Report |
| Return fraud – Customer returns used, damaged, or non-original-condition products. | Financial & Inventory Loss | Report |
| Transaction denial – Customer purchases a product but later disputes the charge, claiming they never authorized it. | Financial Loss | Report |
| Credit card fraud – Customer uses a stolen or unauthorized credit card. | Financial & Legal Risk | Report & Ban Shipping Address |
Protect Your Business from High-Risk Customers
99% of Customers
Are Good Customers – Keep Them
1% of Customers
Are High-Risk Customers – Report Them
Protect Your Business by Reporting High-Risk Customers
FACTS: Protecting Both Consumers & Sellers
As a Consumer
We've all had at least one bad experience with a seller.
If a company fails to comply with its Terms & Conditions, customers have the right to complain and access an established support system.
Consumers have choices that protect them, such as:
- Better Business Bureau
- Credit Card Companies
- Department of Consumer Division
- Law Enforcement
The best part? This support system is entirely FREE.
As a Seller
High-risk customers can cost businesses thousands with little recourse.
Unlike consumers, sellers lack a structured support system when customers violate Terms & Conditions.
Enforcing policies often requires:
- Expensive legal services
- Time-consuming follow-ups
- Significant financial losses
For many businesses, these costs must be passed on to good customers—or worse, lead to closure.
The situation has been one-sided... but not anymore!
How to Avoid High-Risk Customer?
Take action to protect your business:
- REPORT high-risk customers
- SHARE information about high-risk customers
- USE the Good Shopper Verification System (GSVS) before it's too late