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billbenson
09-17-2008, 02:40 AM
This is kind of similar to the ebay ripoff thread, but kind of different as well. I got a PO from a company in alaska for just under 6k. We do business up there for the oil drilling industry, so its not an unusual PO. No terms were stated on the PO. That's unusual. We went back and forth on the quote changing quantities, parts etc. That's normal.

So I did a D & B on the company after receiving the quote and they showed frequent late payments. Hmmm. Went to the website in the last half of the email address of the person I have been dealing with ie if its bob@gm.com you can type in www gm.com and see who the company is. It was a hotmail sort of address.

Then I went to google maps and did the street view thing and looked at that. It showed a building that housed either retail or offices. Could have been a ups store type of establishment there as well. I couldn't read the names of the companies on the bilboard out front or on the front of the individual stores, but none had names short enough to be this company.

It probably is a legitimate order from someone like me, trying to appear like a bigger company. Probably reselling to the oil industry. Certainly I'm not going to take terms from them, but do I want to take their credit card.

This relates to the ebay thread. The merchant is always the one at risk unless you have a bunch of money behind you. If I take a credit card order from them and they dispute it, its my responsibility to prove that the order was delivered and was the correct product. I've been through this probably 10 times in the last 12 months. It's like going to traffic court. The merchant is guilty until proven innocent. I could stand to loose about $4k if they simply say they didn't receive it or order it.

I have very little fraud in my product line and have usually just gotten different credit cards to charge. The engineer that buys something in the field doesn't pass the receipt on to accounting and accounting simply contests the charge because they have no record of it. Private individuals can do the same thing. Costs me time and money.

I'm not sure what I'm going to do on this one. I may have to ask for a check or wire transfer. It's a nice order to...

vangogh
09-17-2008, 03:12 AM
I can see the dilemma. It's a tough call sometimes since as merchants we do have to take a risk. On the other side our clients and customers do take risks too since they pay without always knowing in advance what they'll get.

In the eBay thread the issue was paying and not receiving merchandise so it was the buyer taking the risk in that situation.

I've had a few people get in touch with me for a site and I could tell they were looking to get out of the bill early on. Back when I had a partner and we were just starting out someone contacted us insisting he needed the work done right away. He was pushing us to work without ever wanting to talk about the price.

Every time I'd bring it up he'd change the subject. We did work on the site since we had nothing else to do and needed the clients, but I wouldn't turn over the files. I told the guy as soon as he signed the contract I emailed to him and returned it with a deposit I'd send him the files. He never did reply, though I didn't expect him to.

We did the work for free, but it was pretty clear something fishy was going on from the get go and we made sure the guy didn't receive a single thing from us. End result for me was getting to practice coding when I needed the learning so it wasn't all a loss.

orion_joel
09-17-2008, 07:23 AM
Bill, I know where you are coming from on this one. I have had more then once received inquiries from different countries about the possibility of purchasing Laptop's and paying via Credit Card. Often it would be a request for around $15-$20K which is absolutely an amount that i could not afford to loose.

I have been very much aware of this type of scam, since the first job i had was with a computer company that had been taken for about $30,000 worth of laptops. The first warning bell for me was why would someone from Thailand, want to pay a higher price to buy something from me. I guess it was a really good thing that i didn't have any way to accept credit card's then and was not tempted by the potential size of the order.

Paul Elliott
09-17-2008, 11:15 AM
Bill, you might at least get a cash advance for an amount that would cover your expenses.

billbenson
09-17-2008, 01:37 PM
Ya, I think I'm going to require a check or wire transfer on this one. Even a credit card is to much risk.

Evan
09-19-2008, 01:27 PM
How about requesting a deposit to be made by check, and the remainder by credit card?

billbenson
09-19-2008, 02:33 PM
Turns out the destination is Russia. Could make sense since there is some oil drilling in russia I believe. It was legit. I got a wire transfer today. Probably a small distributor in AK sells to a big oil company who also has operations in Russia. Dunno, but the money's in the bank.

Evan
09-19-2008, 02:54 PM
*bad joke* This wasn't from Sarah Palin was it?

As she said during SNL (again, jokingly) -- "I can see Russia from my house!"

Paul Elliott
09-19-2008, 03:41 PM
Turns out the destination is Russia. Could make sense since there is some oil drilling in russia I believe. It was legit. I got a wire transfer today. Probably a small distributor in AK sells to a big oil company who also has operations in Russia. Dunno, but the money's in the bank.

Great it worked out, Bill. Anyway, it's good to take the extra precautions when dealing internationally or with unknowns.

Paul