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The e-commerce.

Credit Card Fraud


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After I started hanging out in this forum, or possibly when I posted my site here, we started getting hit by someone who has a large number of stolen credit cards.


Initially, I was really pleased to get an order from someone who I didn't actually know and we quickly shipped a 300.00 (US) item after the credit card was approved. When a similar order came week or so later, we realized that something was odd and held the order (even though the credit card approval sailed through). Since the initial order, we've had at least 12 additional ones. The credit cards are always approved by the payment gateway (and we require the CVV code) and issuing bank, the shipping address is always a different address and they are always fraudulent.


The reason that I think that this post is relevant to this forum is that most of the posters (like me) are new to the ecommerce stuff. Everyone is pretty open in the forum, and for the most part we advertise the fact that we are novices. I'm afraid that these forums are being surfed by people like the jerks that are buying stuff from my site - who use the forum as a good source of potential suckers.


So, be careful. We just got stuck for the initial 300.00 sale that we processed (almost 2 months ago). Even though it was approved by the payment gateway and by the card issuing bank, because we shipped it to a non-approved address (I guess that you can find that out by calling the issuing bank), we are responsible for the charges. And, if we don't hussle to void these transaction before they automatically batch, we are stuck with a 3 percent fee for the sale and another 3 percent fee to refund the payment.



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There is a simple way to get around it. Either set the Address Book Entries in the osc Admin->Configuration->Maximum Values to 1 or change the payment modules to use the delivery address as the billing address.


This is was a typical approach even going back to the 90s, many of the popular e-commerce stores use. At one time I ordered an expensive item from the web. The merchant would not deliver because he was using the delivery address in order to bill my card and so after talking to the merchant I had to call my cc bank and add another address (my company's office address where I used to work to the list since I could not be at home during business hours). Took a couple of days for this to take effect but then they did dispatch the item once everything was verified.

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I use MaxMind contrib and this has saved me grief a couple times. I had charges with different ship to and they were from Israel and Lithawania(sp?). Also with bogus phone numbers.


Also, they seem to prefer overnight shipping....


Here's Maxmind Contrib


Always call when there is a different ship to.



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  • 2 months later...



I agree there are many jerks who are trying to find potential suckers on these forums. The best way to confirm this is confirm the billing address of the card and the shipping address if they dont match try to contact the bank and then also the client with the card billing info. the best way to do this manually rather than using automated scripts.





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Or even get yourself a proper merchant account who will do the donkey work for you!


I never ship orders that do not fully match the billing address no matter wot the shipping address is!



Lifes a bitch, then you marry one, then you die!

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I remember my first credit card transaction that was an obvious fraud. They used a fake shipping address that had Accra the capital of Ghana put in for city and something like Alabama for state. Our store policy states that we do not ship orders outside of the United States. Since I had my credit card processor directly liked to authorize.net (and the address verification within the authroize.net cpanel was not set up properly) the transaction went through (credit card number was approved) and my company ended up eating the processing fee even though we canceled the transaction and reported it as fraud. So the moral of the story to other store owners: make sure that address verification is activated in your authorize.net cpanel if authorize.net is your gateway.


Thanks ron for the suggestion, I will have to look into the maxmind contribution for installation into my store.

Andrew Yuen

osCommerce, Community Team

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