Mail order transactions are preferred by cardholders because they only block the card limit by the installment amount. This creates an opportunity for merchants to sell their product/service as well.
But is there any guarantee that, after the first installment of a 1000 TL transaction in 4 installments is collected as 250 TL, the remaining 750 TL will be charged to the card without any issue?
Of course not. In this case, the merchant takes on the risk that future installments will not be paid.
The merchant is required to keep the Mail Order Agreement for 10 years. If the merchant does not keep this document and the cardholder disputes the transaction, the merchant is obliged to refund the money.
Why is mail order a risky transaction type?
In mail order transactions, the card is not physically present at the merchant, and the cardholder does not enter a PIN or complete 3D Secure verification during the transaction. The merchant processes the card information from a form sent by the cardholder. For this reason, whether the person carrying out the transaction is actually the cardholder cannot be verified at the time of the transaction.
Main risks
- Risk of fraudulent transactions: An order can be placed using stolen card information. When the real cardholder disputes the transaction, the amount is charged back from the merchant.
- Dispute risk: Even if the cardholder carried out the transaction themselves, they may dispute it by claiming they did not receive the product or do not recognize the transaction. In this case, the burden of proof falls on the merchant.
- Installment risk: In installment transactions, the risk that the remaining installments cannot be collected remains with the merchant.
What can be done to reduce the risk?
- The mail order form signed by the cardholder and their identity information must be collected in full and kept on file.
- Additional verification should be performed for orders where the delivery address differs from the cardholder's address.
- High-value and unusual orders should be confirmed by phone before processing.
- Where possible, methods that verify the cardholder, such as payment via a link with 3D Secure, should be preferred over mail order.
