Does requiring a credit card deter scammers?

[ScottyMoll]

I'm looking into a business idea for a website and can't decide whether to require a credit card for activation. With all the scammers out there these days, I feel that something as small as this could deter a large number of scammers since their personal information (credit card number *hopefully not stolen* and corresponding address) would be required.

Do you think that a small $1-5 initial charge would be a valid way to weed out scammers, or would it actually hurt my numbers by weeding out would-be customers?

 

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[jon.a]

A while back, a couple of years ago, I had a problem with Navy Federal Credit Union refusing small internet charges on my card. I think it was those $1 trials. When I called customer service they told me it was to protect me. That scammers would test the card before hitting it big.

Your weed out test could flag your merchant account?

As with many things from me, this could be outdated info.

 

[ScottyMoll]

That's a great point. I didn't think about that. I wonder if accounts get flagged for slightly larger amounts like $3-$5. It's funny that a process to weed out scammers could actually get you flagged as a scammer.

 

[jon.a]

What's your business model?

 

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[ScottyMoll]

Without giving too much away, it's basically a 3rd party website that will integrate with other major websites and allow users to transact in a secure, scam-free environment.

 

[jon.a]

Crap, I was hoping to steal another great idea today.

If you won't be specific. We can't be specific.

Without giving too much away, it's basically a 3rd party website that will integrate with other major websites and allow users to transact in a secure, scam-free environment.

 

[hughjasle]

Without knowing what the purpose of the charge is it is really hard to help.

I chased down an idea (put it on hold as it would require too much upfront while I grow my other business) that was essentially a competitor to other rental property websites such as zillow. I was going to charge users to post properties $1 per day to act as a barrier to keep spammers and scammers out and thus keep my site clean with only real listings. If that is the type of thing you are doing then yes it can work. However be aware that it will act as a barrier to some users as well. Its a give and take.

 

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