Credit card fraud

[CactusWren]

How do you deal with this in your online biz? Luckily, I have only experienced it once for a very small amount (under $30!).

Do you have any systems in place?

After my experience, I look twice at orders whose billing and shipping addresses are different, but that is really the extent of it. I also banned both names from further purchases at my store, but my merchant account offered no suggestions.

Off to google this...

This so far from eHow:
http://www.ehow.com/how_4561985_online-store-credit-card-fraud.html

 

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[GoldenEggs]

We have been burned a handful of times. Here are some of the steps that we have tried:

- contacting the issuing the bank of credit card to find out if the card has been reported as missing
- asking the customers to use paypal and ship it to a verified address
- inform the customer that we do not dropship as a safety precaution for them but can ship the item to the billing address of the credit card

Otherwise, it's just another cost of doing business.

 

[biophase]

It's a cost of doing business. Even if someone refutes a credit card charge and you win, you are still charged a $25-$75 case fee. You can ship only to billing addresses, but it would lower your Xmas sales.

 

[EastWind]

yup. cost of doing business.

another thing you can do is trace the IP. modify your billing module to check where the IP is coming from. If you are only shipping within the US, and the IP comes from outside of US Europe/AFrica/Asia, then you deny it.

If you want to ship to an address that is different from billing address, you could ask them to enter their phone number, and you give them a call and verify. I have had companies call me within a few minutes and verify even tho my billing/shipping were the same.

between matching the IP and calling, you will eliminate a few. If you do match IP, don't let them know that you are denying them because their IP doesn't match, because some will just buy a proxy in the US.

 

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[CactusWren]

Thanks Eastwind.

I started doing the calling when shipping and billing address are different, and it has already been helpful and only takes an extra 5 minutes max.

The IP might be a good thing down the road...

 

[LightHouse]

If you only deal in the US you can block all outside traffic period, but that might cause other issues. You may or may not care? it would reduce your server load.

Im going to echo everyone else, its the cost of doing business. I always read through my orders, if something looks weird i can email or call the person, but really your going to loose eitherway, so make it a numbers game.

 

[EastWind]

Thanks Eastwind.

I started doing the calling when shipping and billing address are different, and it has already been helpful and only takes an extra 5 minutes max.

The IP might be a good thing down the road...

glad I could help. No serious customer will refuse to buy. As a matter of fact, that will let them know that you take security serious and they will feel even safer using your site. Good luck.

 

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