Justice for Merchants: Recoup Our Losses from Bank Fraud

For 18 years, Sail Shade World has been providing high-quality shade sails to customers around the globe. We pride ourselves on our innovative online platform that allows customers to design and order custom sails with ease.

But a recent fraudulent attack has left us reeling. We lost over $38,000 to 21 fraudulent credit card transactions. This was a devastating blow to our small business.

Here's the problem: ANZ, our bank, has been collecting hefty transaction fees from us for years, claiming it was for enhanced security. In 16 years they never once mentioned 3D Secure, a vital security measure that could have prevented this fraud. It was only after the attack that we were informed about this crucial security feature.

We feel betrayed by ANZ's negligence. They've been taking our money, close to $300,000 in fees, while failing to provide the essential security measures we needed to protect our business. This is a clear breach of trust.

We're launching a GoFundMe campaign to get noticed. We aim to advocate for legislation requiring banks to ensure that all online merchants have the maximum protection available, so no other business has to endure the losses we've experienced. Your support will not only help us rebuild, but also contribute to a safer online environment for all businesses.

Our goal is to raise $7,500. (AUD) This will help us create awareness and hopefully put enough pressure on banks and legislators to follow the EU where online merchants are required to have the maximum security to protect both their customers and themselves .

We're also fighting for justice and accountability. We believe ANZ should be held responsible for their negligence in protecting us, and we're calling for greater transparency and responsibility from all banks in protecting their merchant customers. Your support will help us contribute to a safer online environment for all businesses. By joining us, you'll be helping to ensure that no other business has to endure the losses we've experienced.

Please donate today and help us. Every contribution, no matter how small, will make a difference.

HERE IS THE FULL STORY.

Our business, Sail Shade World Pty Ltd, was started in early 2006 and was based on technology that I had invented that provides the ability to create a quotation for a made to measure shade sail to be delivered anywhere in the world.

This was still the early days in e-commerce and, since our price point per sale would vary from 3 to 400 dollars up to several thousand dollars, ANZ were reluctant to grant a Merchant account citing immense potential risk with such a global business model. Eventually they agreed but at a high percentage per transaction. I think it was over 3%.

The creation of the Merchant account was done at branch level and once established ANZ guided us to a company that would process the transactions. We were supplied with the code, that interacted with their processing portal, and following their instructions installed it on our website.

As the business progressed, we experienced no problems with our online payments from customers and our percentage was progressively reduced to 1.8% since we were proving to be a Merchant with exceptionally low risk. (ANZ’s words at the time)

After several years ANZ informed us that we would need to change the processing company and we were switched to FatZebra, A Wells Fargo business. As before we were supplied code and integrated it into our system.

Sometime later, I think about 10 or 12 years ago. ANZ said that our rates would have to go up to 3% again. They said that the increase in cybercrime and the risks and costs associated with international business required that they did this for improved security. Of course, we had no choice but to go along with this increase but felt happy at increased security.

In 2017, after 10 years and many thousands of transactions, we had our first chargeback. This was not credit card fraud but a customer trying to get out of paying. The charge back did not happen. At that time, I had dealings with several people in the ANZ Merchant department no mention was made about improving our security, or the options available.

Subsequently we had 2 more chargebacks neither were credit card fraud. Again, nothing was mentioned about improving our security or the options available.

This brings us to the events in July where we had 21 fraudulent credit card transaction totaling $24,787.50 USD (about $38,000)

I was in shock when the lady I was speaking to on the phone said that we would be liable for these chargebacks since we did not have 3D secure, the very first mention of this after 18 years! She did also comment that I should have been told about it and she would ask for an investigation.

I take the position of a reasonable man, and I placed great reliance on ANZ.

I am now thinking about the, close to, $300,000 that they have received from our credit card fees and have a question WHAT FOR? (we pay FatZebra for the processing) How can they justify these fees without being diligent in assuring that we, their customers, are protected.

I had also assumed, a folly apparently, that the increase in fees from 1.8% to 3% was for our security as they had described. But since it was not, I would like to see this 1.2% difference refunded.

Even though information might be available on their website this does not constitute informing your customer. Maybe if we had received communication saying that we should make ourselves aware of security measures we should be taking by visiting the website that would be enough, but we never received any such advice. I had never visited the Merchant website until last month, I did not know it existed and had no reason to visit it.

I believe ANZ have failed in their duty to inform us of 3D secure, they have ignored us while happily collecting hundreds of thousands of dollars. We were not even informed of their new products.