I have been checking out all these merchant account services, such as revecom, 2checkout, authorize, ect ect.
All of which charge for the authetification of a credit card.

Now, I was wondering. Do you get charged when someone's credit card is unintentionally mistyped, or in general is a fraudlent card?

If so, isn't this a little unfair? And could possibly cost you hundreds, if not thousands monthly?
There are people who live off the satisfaction of annoying/destroying businesses. I mean whose to say, that one of these juviniles don't charge up multiple accounts intentionally each day.

So someone please give me the run down of this type of stuff.
Thanks greatly in advance.

The chance that happens is very small, since not every number is just a valid credit card number, and it still needs an expiration date of the credit card as a 'double-check'.

And most processor will check names,addresses of the credit card holder aswell. So I don't think it will happen that often :D

Or the user is just messing with somebody else his/her credit card on purpose :rolleyes:

No, I understand people cannot keep producing valid credit card info. What I am asking is, if Joe Bob types in

1234-5678-9101-1213,
and all this other fake contact/address info, will it charge me?

Because, when he types in that info, and it brings him to a page saying "Authorization Error". That is in fact checking the authorization.
Hence, it incurs a charge? Or am I wrong.

Thanks

Most transaction companies (example: authorize.net) charge a fee.. Authorize.net's is (usually) for example 5 cents each transaction

5 cents fro denied, authorized, batch, etc

ooooooops i did it again :(

Originally posted by Michael M
No, I understand people cannot keep producing valid credit card info. What I am asking is, if Joe Bob types in

1234-5678-9101-1213,
and all this other fake contact/address info, will it charge me?

Because, when he types in that info, and it brings him to a page saying "Authorization Error". That is in fact checking the authorization.
Hence, it incurs a charge? Or am I wrong.

Thanks

Hi,

I can't speak for the other processors, but transactions that are not completed are not charged.
In our situation, the card has to pass having a "real number", an AVS and the CVV must match.

This stops someone from just hammering away on a keyboard, trying to get a random number thru.

Third party processors usually in my expierence ONLY charge for transactions that are excepted.

Direct Merchant accounts using a virtual terminal, authorize.net for example, echo as another example.. Charge for EVERY TRANSACTION.. A Batch, a denial, an approval.... Is a transaction.

Verify with the company you sign up with first.

(this fee is not terrible)

Greetings:

One thing to note that if an order goes through but is determined to be fraudulet, you will be charged by all merchant providers involved for the transaction.

Thank you.