I know this has been discused over and over and I spent all night reading tons of posts here and I still have some questions.
I just started my hosting company, my primary goal is shell (IRC) hosting and web hosting as secondary.

The problem is that I started with PayPal as only payment solution and so far 3 out of 5 payments are fraudulent. Don't you think that's too much. All that I receive from paypal is email saying "It has come to our attention that you may be the recipient of potentially fraudulent funds... bla bla, bla bla" and money were deducted from my account. Just to mention that those were transfered from verified paypal accounts. Don't they check those accounts before they transfer money to my account?

Now here is the interesting part, snap from IRC:

<aa> I've see an ad on dalnet..
<aa> are you cardable?:>
<ME> no, we are not, we accept cvv2 cc's only through paypal
<aa> I have tons of those
<aa> can i order right now?
<ME> aa, we don't accept fraud cc's
<aa> you gonna report me to the fbi ?:>
------------
<ME> in next few days we will go trough authorize.net
<bb> don't do that..
<bb> if you want to stay in bussines
<bb> you will get tons of refunds..
<bb> and payments.. not accepted..
<bb> and .. fraud. and bank problems..
<bb> just saying that lots of ppls (carders) have authorize accounts...
<ME> well, i guess theres no way to avoid carders
<bb> process them manually..
<bb> or.. process them by delay...
<bb> let's say.. 2-3 days..
------------

I had to refuse several customers that ask for the most expensive accounts, and thay wanted them for 1 year (over $400) and they wanted to pay strictly through paypal.
Is PayPal so unsecure? Is PayPal full of fraud accounts?
I checked cc-related channel on Dalnet IRC network and I was surprised that they are listing cc's with cvv numbers every few seconds there. That means no problem to open paypal account with those stolen cc's.

Now, since I decided not to use paypal, I realy need good 3rd party cc processor. I saw in threads a lot of 2CheckOut satisfied customers, and almost no complaints about them. Am I right? Is 2 CheckOut way to go? Do they have better fraud screening than paypal? Do they do address verification. Did you have any issues with 2CheckOut.com? And last question, can I set only "order" links with them, no shopping carts?

Please advise me ASAP, thanks in advance.

There are always problems with shell account reselling, not to mention irc shell accounts. These little crackers are doing everything to avoid to pay monthly fees.... and using a lot of stolen / generated credit card numbers...

I would suggest you protect yourself by accepting orders with faxed credit card front/back and filled credit card authorization form signed and properly dated. You may also want to ask for a faxed ID if order is from overseas (pay a lot of attention to poor countries... and former USSR).

I suggest you also log client IP on order page and then do a traceroute or lookup it at Arin Whois DB. Do not accept orders where billing address is different from a real one (use AVS) but this will require a merchant account or service that supports it.

Pay attention to strange orders. A person never sent e-mail asking some questions, to test out sales/support but orders the most expensive package. The same applies for a request to process order with minimal delay and so on.....

Hope this helps.... ApolloDude

Provide hosting for deviants, get fraud.
How hard is that to figure out?

Originally posted by sbrad
Provide hosting for deviants, get fraud.
How hard is that to figure out?


That's pretty much the case. If you are going to provide hosting for IRC, you are asking for trouble.

--Tina

This is strange, man! :eek:
3 out of 5 payments are fraudulent?? :confused:
I've never experienced any fraudulent payments through PayPal. I think you're a victim of one person who's trying to mess with you... :rolleyes:

Good luck! ;)

Hi how are you!

Just a small word of advice listen to the people here because they are so right...

Are you ready for the following :

1) Fraud Orders all the time due to the IRC HOSTING

2) Complaining Customers because you just got K-Lined

3) Unreliable hosting because chances are you will get DOS more often.

4) Low Server resources

5) Heaps of probs when people using egg drops.

6) Bots suck up heaps of bandwidth

I suggest you dont have your irc server on the same server as Hosting - Well serious hosting anyway...

Good luck in whatever you decide

IRC Chat Hosting is on our list of prohibited items for all the reasons listed above.


TomD
tom@2checkout.com

Originally posted by TomD
IRC Chat Hosting is on our list of prohibited items for all the reasons listed above.


TomD
tom@2checkout.com


DITTO

I agree with everyone else.

I'll be really surprised if you get a single non-fraudulent order.

Ok ppl, thanks for your suggestions, but I would realy like to offer IRC shell accounts on my server.
As for web hosting we are planning to get second server dedicated only for web hosting and no IRC on that server.
As for IRC, I dont know if you are aware that there are hundreeds of shell providers and they somehow deal with this. I don't know how, and how many fraudulent orders they get, but I know some of them have over 500 users, and that means shell hosting is possible. I am aware of the bigger risk of fraud orders and thats why I asked for suggestions here.
If you know which 3rd party cc processor can deal best with fraudulent cc's I would realy appriciate if you can tell me.
Is there any cc processor that do address check, cvv2 check and whatever is needed to avoid fraud orders and minimize chargebacks?

If you are to ask me, I would still recommend Clickbank (yes we are using them). Although their deductions is quite higher than the rest. But, it seems to be screening orders just fine.

Good luck!

:)

IRC hosting is really very high-risk (this is why we do not allow IRC at all). As such, you will have to have a plan to stop fraudulent orders. I think the following has already been suggested:

1. Ask people to fax you their credit card AND an ID
2. Enter information manually into authorize.net
3. Wait for 3 days before activating account

This should stop 99% of fraudulent orders, and if you explain to your customers why you are doing this for IRC hosting I think it should not scare away customers at all.

My suggestion is to not go near IRC shells with a ten foot poll. But if this is something you really want to do, listen to avara. Don't activate any orders until it has been processed and accepted. Hopefully if people know that it will cut down on fraud attempts.