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What is an Objection, and How Do You Handle It?

Written by Cecilia Rosenkilde | Oct 24, 2024 12:30:52 PM

Interview: Ceciliea Poulsen, pensopay.

The term 'objection' might seem intimidating as a webshop owner. You might even be unsure about what an objection really is. That’s why our in-house expert, Ceciliea, has clarified exactly what objections are and what steps you should take if you receive one.

Wondering what an objection is? Let me explain. As a cardholder, if you’ve purchased something from a webshop and haven’t received the item after trying to resolve it with the webshop, you can file an objection. Filing an objection is a way for you to officially express your disagreement. This also applies to transactions made with your card that you don’t recognize. In such cases, you should contact your bank. The bank will reach out to Visa or Mastercard on your behalf and submit an objection. Ultimately, this objection is sent to the webshop.

When a webshop receives an objection, it is required to provide documentation for the case, after which Visa and Mastercard assess whether the objection is valid.

How is the case decided?

“Often, you can determine what happened by checking the tracking information, order confirmation, or delivery confirmation, among other things,” explains Ceciliea, pensopay.com.

“We only see the objection at Pensopay once it has been filed. The acquiring bank contacts us, and we subsequently reach out to our customer, the webshop owner. It’s important for webshop owners to address the objection and provide the requested documentation,” says Ceciliea Poulsen, pensopay.com.

If you, as a cardholder, find that you’ve ordered a product that you didn’t receive, you should contact the webshop. Generally, this can be resolved between the webshop and the cardholder. However, if you cannot reach an agreement, you can file an objection as a cardholder.

However, an objection should be a final option and never the cardholder's first approach to the issue.

What does an objection cost?

Filing an objection costs DKK 240 in fees for the webshop, regardless of which party wins the case. In some instances, the fee may be higher depending on whether it's a high-risk business.

In addition to the fee, the webshop may risk having to resend the product or refund the cardholder. Receiving objections is a risk in the e-commerce industry. Fortunately, it happens rarely—but it’s important for the webshop to take it seriously if the unfortunate situation arises and they receive an objection.

Tips for avoiding objections

Since objections often occur due to fraud or other misuse of card data, there are some straightforward steps that webshop owners can take to avoid receiving objections later.

The following steps should be checked if an order seems suspicious or raises concerns about a potential fraudulent transaction:

  1. Check which country the payment card is registered in.
  2. Check which country the order is being shipped to.
  3. Verify that the name, email, address, etc., match.
  4. Ensure that the billing address and delivery address are the same.
  5. Confirm whether the order has been verified with 3D Secure, e.g., MitID.

If, after checking the above, you still have the slightest doubt, contact your customer. Consider calling them and asking for written confirmation of their purchase if it was made intentionally.

If the customer cannot confirm it, you can still cancel the order and possibly recommend that the customer contact their bank.

“Always use your common sense and take a second look.” Ceciliea Poulsen, pensopay.com.

3D Secure is for the safety of all parties involved

When shopping online with a payment card for DKK 225 or more, you must go through 3D Secure.

This method reduces the risk of fraud. 3D Secure provides security for everyone—both for the individual consumer and the webshop owner. You can read more about 3D Secure here.

If you would like to learn more about objections, you can read more on our help desk here.

At pensopay, we naturally also employ 3D Secure for our transactions.

Thank you for explaining what an objection is and what to do if you receive one, Ceciliea.

Team pensopay

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