What is your % of chargebacks?

Peter

0%

Just over 0%.

0

0.00%

000.000%

Originally posted by avara
Just over 0%.

About the same here. Pretty low due to keeping an eye on the setup of accounts. We had one a two days ago that used the street address of 'USA', so it promptly got dumped.

Greg Moore

0%......

Thanks to all that replied to my question.
I guess I'm going to be in different situation than you, because I'll resell for hosting company, not to own my servers.
Is there a way to get near 0% chargebacks (fraud orders) like reseller?

Thanks,
Peter

Originally posted by poncho2000
Is there a way to get near 0% chargebacks (fraud orders)


We've had only 1 chargeback, ever.

Suggestions:
1) Always use the Address verification system
2) Double check things, if your average sales ticket is 9.95, and someone pays $300 for a year+ of hosting. Give them a call and make sure they are are real.
3) Have people sign and fax back an agreement that allows you to charge their card $x. This will help you against chargebacks but is not convenient for new customers.

Hope that helps!

Cheers,

So far 0%, but we have recently had a few fraudulent orders that we promptly have refunded.

1) Always use the Address verification system

Is this free?
Where is this?

We use worldpay and the AVS is part of the statement you get for every transaction. Basically it checks the address, country and postcode matches the card holders billing address. Its not guaranteed but it helps.

99.99% ................................................................... oh wait thats our uptime lol :D

0 % - But we always do a check (to the best of our ability) on every new account. When one looks 'shady' we simple refund the money and don't open the account.

We have about one chargeback every one or two weeks. The hosts that have 0 chargebacks are either:

1. Magicans :rolleyes:
2. Have no clients :stickout
3. Lucky :D

Etc

Originally posted by successful
We have about one chargeback every one or two weeks. The hosts that have 0 chargebacks are either:

1. Magicans :rolleyes:
2. Have no clients :stickout
3. Lucky :D

Etc

So:
1. There's nothing 'Magical' about you
2. You have one client every one or two weeks
3. And consider yourself un-lucky

etc

LOL :D - sorry couldn't resist ;)

Originally posted by successful
We have about one chargeback every one or two weeks. The hosts that have 0 chargebacks are either:

1. Magicans :rolleyes:
2. Have no clients :stickout
3. Lucky :D

Etc

I'd say that you need to vet your sign ups more thoroughly - We refund on a regular basis, probably one or two every one or two weeks :)

We've had 1 chargeback in 7 months.

Your merchant account can be taken away if you get excessive chargebacks to your account.

I never process an account that when you type in the domain name, it points to the Network Solutions parked page without thoroughly checking it - That's asking for a chargeback later on.

I usually find that the domain name is Indonesian and the credit card belongs to some poor sole in the USA.

I always check telephone numbers on high orders too, http://www.switchboard.com is a good resource.

Steve

0%

I think a big part that helps us is that we charge on a month to month basis. I know that many folks, especially businesses, like to pay a year in advance, but we try to steer clear of that. There is nothing wrong with paying a year in advance--I notice that many hosting companies prefer it--but, we encourage monthly payments.

1 / 400

Unless you're a very small web host, I don't think anyone can claim that they've never had a chargeback. Yes address verification and checks on large orders (we phone to verify yearly orders), do help a lot and get rid of most fraudulent orders, but there will always be one or two that slip through unfortunately.

I think a reasonable level of chargabacks is 1 in about 300-500 orders. 2Checkout's fraud checks really work wonders here. :)

We get about 10 - 20 new orders per day...we get about 1 chargeback every third month.

--Tina

0%. Talk to your customers. Invest in the relationships. Provide good service. So far it's worked pretty well for us.

Originally posted by netfido
Provide good service.

Providing good service isn't going to help when someone signs up with a stolen credit card.

Originally posted by avara
I think a reasonable level of chargabacks is 1 in about 300-500 orders. 2Checkout's fraud checks really work wonders here. :)

1. How do these fraud checks actually work? We've just signed up with them and are wondering if we should manually verify every order or simply rely on 2checkout.

2. Also, what is the best thing to do if an order seems dodgy but the transaction has alredy gone through. Would a refund be good enough (I'm thinking this may leave some customers wondering why they didnt get their account open although the order has gone through)?

3. What actually happens when u have a chargeback with 2checkout? What is the max u can lose? How much liability do u have when using 2checkout?

I know we should have clarified all of this in advance :) better late than never :)

Hi,

Is there a way to do checks on CC order before actually sending it to CC processor?
Any ideas?

In the past 2.5 years, 0. We had 1 about 3 years ago, and that was resolved in our favor.

Questions to all with 0% chargebacks:

Is there anybody who is using real time CC processing like 2checkout or similar service or all of you have merchant accounts and check all the orders manually?

Thanks,
Peter

exactly 0%

We use 2checkout.com and to date, we have not had any chargebacks.

Although, if you are going to use the instant bill system, the best way to verify if it is a good charge is:

1) Call the customer with the phone number they provide and see if it is really them - this prevents 80% of the fraud. Just tell them you are verifying the order and confiming thier password. If it is not a legit order, you can refund the card, hence prevent the chargeback.

2) We used to (2checkout does it now) use address verification along with the process above. If it did not verify the billing address was correct, the charge was not accepted until we got the correct billing address.

3) On MasterCard and Visa, use the CVV number on the back (the three digit code). Unless they have the card in thier hand, it is really hard for someone to get ahold of this number.

Using these three things, we only have had 1 chargeback in a year and a half, of which was resolved in our favor.

Frank Arena
Node Hosting Internet Services
http://www.nodehosting.com

NodeHost,

Thanks for the helpful information. I have 2 questions:

I have to pay something if I refund the charge on card (prevent the chargeback)?

Is the CVV included in CC verification (I'm going to use 2checkout.com)?

Thanks in advance,
Peter

We use 2checkout.com and to date, we have not had any chargebacks.

Although, if you are going to use the instant bill system, the best way to verify if it is a good charge is:

1) Call the customer with the phone number they provide and see if it is really them - this prevents 80% of the fraud. Just tell them you are verifying the order and confiming thier password. If it is not a legit order, you can refund the card, hence prevent the chargeback.

2) We used to (2checkout does it now) use address verification along with the process above. If it did not verify the billing address was correct, the charge was not accepted until we got the correct billing address.

3) On MasterCard and Visa, use the CVV number on the back (the three digit code). Unless they have the card in thier hand, it is really hard for someone to get ahold of this number.

Using these three things, we only have had 1 chargeback in a year and a half, of which was resolved in our favor.

Frank Arena
Node Hosting Internet Services
http://www.nodehosting.com

I don't think there is any fee's for refunding money with 2checkout.com - I have not been charged any for it so far, but I have only ran across 2 questionable orders in the past couple months.

For the CVV, yes, it is a required field on the 2checkout.com site, whereas if it is applicable to the card they are trying to use, they have to enter that field in.

Hope this helps! Use me as a reference if you sign up :) I have not gotten any referals yet..... (I say this laughing)

Hi,

I think we are going to have to give you the title "2checkout.com greeter"

Thanks for all the information & kind words you are saying about our product.

It is much appreciated.


TomD
tom@2checkout.com

Hey, no problem!

I really like your service - it has made my life alot easier. I tend to talk about the things that make it easy for us.

I know how hard it is for me to find stuff on this huge web that actually helps, not hinder a hosting company. I just want people to know that there are things out there that do help without having to have that bottle of Excedrin Migrane sitting next to our servers......

In all of our 5 years in business, we've only had one chargeback that was not reversed in our favor, and that was recently, from an order from malaysia. Guess should have known better to take an order from that country, but their were no other signs of fraud that I could detect.

Turns out was a stolen card number of another malaysian resident.

That would be lots of decimal places if I did a percentage.