need help! chargeback from Discover

Hi everyone. Need some help here.

I run a small e-commerce business out of my house. I am the owner of the company and run it myself.

I had a few orders shipped to different states than their billing addresses. This is sort of common since a lot of my customers are military. I thought nothing of it and processed the orders.

After a week or 2, I get a letter from Discover stating that this was a "card not present" fraud transaction. I sent in all my invoices along with the printouts from my merchant account like they requested.

FYI, All addresses matched along with the card code.

Today I just looked into my Business Checking Account and see that they debited the amount of the charge. All within a week or so from mailing in the information they requested.

What is my next step? Do I just lose the $1600 or is it temporarley taken from my account while they investigate it? They have not sent me anything regarding if I have lost or won etc. I received a letter with info on how to reduce chargebacks, but the kit they were sending is on backorder.

There were 3 similiar transactions with different billing addresses, but shipped to the same place.

My business has only been live for maybe 4 months and this is my 1st encounter with a chargeback. Any opinions will greatly appreciated.

thanks

I would suggest you check out the similar threads at the bottom of this page.

I would 1st advise going to discover.com, log into your account then download any info you need there. 2nd to find out if the card owner contested the order.

I am a Merchant Acct ISO and usually issues like yours involve how your particular merchant account has been set up. Most payment gateways have certain criteria for eCommerce. I am not sure exactly how Discover obtained the info that a purchase was sent to a different address than the billing. But if your payment gateway is sending this info automatically with every transaction I would suggest omitting the delivery address in zencart and use "Special Instructions" as your shipping module.

Usually banks or clearing houses require you to request the CVV code (3 digits on back of credit card) when processing online orders to make certain the purchaser has the actual card in their possesion. If they dont give you any answers you can always try running the transaction again.