For physical good merchants, being on top of incoming disputes can help prevent the loss of merchandise.
Rerouting shipments is something merchants, valid customers, and fraudsters can all use to their advantage. We will go over why each of these parties uses rerouting services and how merchants can use it depending on their shipping carrier.
Why Valid Customers and Fraudsters Reroute Shipments
True and honest customers may need to reroute shipments for reasons that can range from the package being a gift and wanting it at delivered to their work instead of their home, a recent move overlapped with ship times, delivery times not lining up, etc.
But fraudsters use rerouting to steal goods from merchants. The fraudster will get hold of stolen credit card credentials and make a physical good purchase. They will use the address of the actual cardholder to make sure the purchase gets past the front end fraud filters. Then when they get the shipment notification they reroute the shipment to an actual location they have access to. You can check out our recent blog post to learn more and how to prevent these fraudsters.
How Merchant Can Use Rerouting
Now that we have covered how customers and fraudsters use the ability to reroute shipments, let’s talk about how merchants can use rerouting shipment to prevent fraud loss. When a cardholder disputes a physical goods charge, merchants run the risk of losing the transaction amount, getting a dispute fee, and losing the merchandise.
A merchant can lessen the fraud loss that comes from disputes by first responding to disputes with a well crafted dispute response. For physical good merchants, being on top of incoming disputes can help them prevent the loss of merchandise.
As soon as a notification of a dispute comes in merchants should check what stage fulfilment or shipping the merchandise is in. If the merchandise has not been fulfilled or shipped yet, then cancel the order and tell fulfilment to restock the item. If the merchandise is shipped and has not yet been delivered then this is the merchant’s chance to reroute the shipment and prevent the loss of merchandise.
How to Reroute
How to reroute shipment depending on the carrier:
The U.S. Postal Service use a process called Package Intercept. For merchants to active this service they must have a Centralized Account Payment System (CAPS) account, then register online at the Business Customer Gateway to make a request and pay applicable fees.
To redirect a FedEx shipment while it’s in transit you can use one of these two options:
- On fedex.com the tracking or door tag number and the select “hold at FedEx location” which will redirect the shipment to the nearest FedEx location.
- Call 1.800.463.3339 to take care of the rerouting
UPS Delivery Intercept is a fee-based service that allows shippers to request the intercept of packages. There are a couple of options when it comes to requesting an interception. These are:
- Return to sender
- Deliver to another address
- Reschedule delivery
- Will Call
For DHL shipments a form can be filled out to prevent the shipment of goods. DHL states, “Shipments that are in the process of being transported fraudulently on your DHL Express Account may be stopped. Also, if you suspect a receiver of ecommerce fraud, our Security Intercept Team can assist you.”
Even with rerouting shipments, merchants still need to respond to the dispute itself to recover the most amount of revenue possible. Check out our free dispute response templates that can help you respond to disputes quicker, easier, and with the right compelling evidence.