Lost Card

• Chargebacks that occur due to a customer's loss of a credit card are legal. If the charges were not made by the individual, a chargeback will stand, even if a company shipped or provided services. Small businesses must authenticate the cardholder's identity to prevent fraudulent charges. In person, the cardholder's name should be matched to a picture ID. Online payment processing should include the security code from the card, and products should only be shipped to the cardholder's address.