I just thought I should share my experience about credit card fraud. In my previous websites, I had basic address validation and etc. But chragebacks were about 12% which is quite high. And for every chargeback, I would get a penalty fee from my merchant of $30 so it was becoming quite expensive.

I know there is alot of fraud from people using stolen credit cards for hosting services and if you run one of your own and accept credit cards, this is a prooven way of getting them knocked out.

I implimented the services of maxmind.com and I went from having chargebacks every month to absolutley zero. Its a really great service and it has saved me an ooooodle of money from lost revenues and penalties.

Also it will save an immense amount of payroll time from your billing agents calling credit card customers to get voice confirmation and other traditional methods of stomping out fraud.

We use maxmind.com $5/month can't go wrong

ip2location is another good service like this. Since using them we have had zero fraud.

The problem with many 3rd party fraud screening services, is they tend to screen out good orders sometimes. In my experience, simply picking up the phone and calling new customers eliminates 100% of chargebacks.

--Tina

The problem with call backs is some order forms process the transaction "live". So the transaction is complete by the time you phone them.

For modernbill users you can use Fraud Guardian, which is a similar alternative to maxmind.com. It is cheap as well.

Originally posted by stokes_83
The problem with call backs is some order forms process the transaction "live". So the transaction is complete by the time you phone them.

For modernbill users you can use Fraud Guardian, which is a similar alternative to maxmind.com. It is cheap as well.
Varilogix works well with Modernbill if you want to insert an automated call BEFORE the order form finalizes the transaction. Integrates well with FraudGuardian & Modernbill together as well.

I crafted my own way of validating orders. 100% accuracy and our charge back rate is approximately .01%.

Look at various things such as:
-IP address location (whether or not it connects to the address provided (same city / state)).
-Check AVS
-Check CVV, CVN, etc
-Check the referrer (for example, we advertise on one site and we have never had a chargeback from any customers referred from that site).
-Call the customer