Discover Refuses to Admit Fraudulent Charge

MarcusCrassus · ‎06-05-2015

I recently noticed a fraudulent charge on my Disover Card and promptly reported it. The item was purchased online from a merchant I have never bought anything from before and sent to someone on the other side of country.

Discover, however, did its investigation and claims that the charge is valid because the fraudster had my credit card # and billing address (which could have been obtained from any number of security breaches) and is therefore holding me 100% liable for the charge (so much for their claim about $0 liability for fraud). How the heck does Discover expect me to prove that the charge was fraudulent? Find the fraudster and have him confess in their corporate office? The dispute is also going on my credit report (though creditors apparently are not supposed to use this against me).

Does anyone have any information on how I might go about disputing the charge any further? Thank you for any help that you can give.

Anonymous · ‎06-05-2015

Wow. I am so sorry to hear that you are going through this nonesense. I really hope that the members of the forum can give you better advice than me and help you resolve this.

Did you try calling back and maybe finding a more reasonable representative?

MarcusCrassus · ‎06-05-2015

I've talked to several people and sent Discover a letter. I've even filed a complaint with the Consumer Financial Protection Bureau. It's just that Discover's own investigation seems to be all that's necessary for them to deny a fraud claim. I don't know if Discover in particular is more likely to deny fraud claims. I've had other card numbers stolen several times in the past and those other CC companies have not held me liable for any fraudulent charges. Regardless, it should serve as a warning to everyone:

Do not take claims about $0 liability for fraud at face value.

jsucool76 · ‎06-05-2015

how much was the charge for?

I don't hear about stuff like this often. most lenders are very quick to simply say "yes we'll take it off"

Platinum · ‎06-05-2015

This is not first time I hear stories like this about Discover and Discover only. That's why I've got rid of them for good. They often side with fraudsters/ merchants.

Blodreina · ‎06-05-2015

Wow. I've never heard of this happening; like someone else said, CCCs typically seem to be prompt in removing unauthorized charges. Honestly, that would be grounds for me to consider closing it. What if it happens again in the future?

Platinum · ‎06-05-2015

I am here for almost 10 years. There has been several stories shared, this is just one of them. I hope it's OK to post the link.

http://ficoforums.myfico.com/t5/Credit-Cards/Discover-disputing-a-transaction/m-p/2213053/highlight/...

bz386 · ‎06-05-2015

By law you are only liable for up to $50 and the burden of proof is on the credit card issuer. (I am not a lawyer, so take this with a grain of salt)

https://www.law.cornell.edu/uscode/text/15/1643

barbaralee · ‎06-05-2015

Need more info.

How does the Discover process work? When we work Visa/MC disputes and the merchant comes back with strong proof that the cardholder participated in the claim we allow the cardholder to respond within XX amount of days. Does Discover not allow you to respond to what the merchant said?

What kind of product was it?

Was it a store? Something purchased online?

Sorry, but working in disputes I've seen all types of people claim "fraud". The vast majority really are fraud, but a layman's terms of what is fraud vs. what is not is very skewed. Not saying this was the OP's case, but it sounds like whatever investigation they did (which usually has a lot more to do than an address match) supports that he or someone in his household somehow participated in the transaction.

The only other thing would be required paperwork not turned in.

But I am not familiar with the way Discover disputes work, I am assuming it is similiar to Visa/MC.

Anonymous · ‎06-05-2015

@Platinum wrote:
I am here for almost 10 years. There has been several stories shared, this is just one of them. I hope it's OK to post the link.

http://ficoforums.myfico.com/t5/Credit-Cards/Discover-disputing-a-transaction/m-p/2213053/highlight/...

never a problem posting a link from past threads here.