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osCommerce

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Avoid Credit Card fraud without to many restrictions?


Paulz

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Posted

After several weeks reviewing this subject Ive come to the conclusion that its very difficult (impossible!) to avoid fraud without restricting sales.

 

Ive come up with the following methods:

As Im based in the UK Ive decide to accept credit/debit cards only within the UK but also offer 2 additional payment methods for international sales:

1/ Cheque/Postal Order etc.

2/ BACS/Bank transfer etc.

 

Considering the risks of delivery to a seperate address from the billing address Id like to implement a restriction by value ie: up to ?150 order to seperate delivery address, this obviously wont be implemented when paying by options 1 or 2.

 

Im also considering avoiding mobile numbers in the Contact Information

by adding a drop down box with the UK local codes.

 

also possibility of blocking certain email addresses ie: hotmail etc. although Im going to research this more?

 

These methods may seem too restrictive to many of you, but not in consideration of the number of large companies who don't ship international and wont send to an address other than the billing address.

 

I'd appreciate any feedback on the methods and/or help on development.

 

Regards

Paul

Posted

I have recently discovered that you can actually call your merchant account, and they will validate orders for you for free.

 

Anytime I have an international or suspicious order, I call my merchant account, and they call the cardholders bank, who in turn validate that the order is authentic.

 

I also tell all international orders that there may be up to a 7 day holding period while we validate the order.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

Posted

Chris,

What merchant do you use?

 

I'd still be sceptical about the validation, because all they really could provide is the card is not stolen and the billing address is ok.

Ive known associates in traditional bricks & mortar business who have suspected credit card payments accepted over the counter, suspected and phoned for confirmation which was approved on over 10k, later finding out it was fraud. Although they didnt lose the 10k because it was approved if the same transaction had been on line the merchant would definately lose the 10k!

Posted

I use mbankcard

 

And no, they do more that just make sure the card isn't stolen and the billing address is correct. They will actually contact the card issueing bank, and have them verify with the customer that the order isn't fraudluent.

 

It's not something you can do with every order, but orders that are that much, or wiht orders that look suspicious, you can call it in. This process has already saved me a bundle.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

Posted

We were badly hit last year, cost us over ?7000.00 ($11,000.00)!! After lots of hassle with our bank and PSP, we were the first site in the country to do trials with Lloyds Cardnet CVC and address checking - that has helped quite a bit.

 

The other thing that we have done is post a warning on our site that anyone paying by credit card may be asked to produce their card when the goods are delivered by the carrier. I know that we have lost some orders because of this restriction but on the other hand our credit card fraud has dropped 99% since we put these two things on to the site.

 

The other thing we are going to do is look at another PSP who are offering active fraud prevention measures. For obvious reasons, I am not giving details here but if anyone with a UK based website wants to contact me by landline (phone number on the site, look at the ABOUT tab) I will tell them all the details.

 

Hope this helps someone prevent fraud on their own site.

 

Tim

http://www.kingdomkomputers.co.uk

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