Hello everyone

My question is what is the best way to deal with a fraud order and without losing the sale..? and how do we know that the order is a fraud for real..? Do we have to depend on the credit card processors confirmation or is there any other way..?

Thanks

Hello everyone

My question is what is the best way to deal with a fraud order and without losing the sale..?

Think about it. You want to keep someone who has used a stolen credit card as a customer??? :eek:

You need to do your own fraud checks to determine if the sale is fraudulent or not. If it is, cancel it immediately and refund the money.

--Tina

Think about it. You want to keep someone who has used a stolen credit card as a customer??? :eek:

You need to do your own fraud checks to determine if the sale is fraudulent or not. If it is, cancel it immediately and refund the money.

--Tina

The term fraud order, does it only mean a stolen CC..? couldn't it be another reason like entering inaccurate CC details such as CVV code hmmmm :confused:

And what are the ways and means a webhost can determine whether an order is fraud or not..?

The best method I've found is to verify the client's ip address geolocation with both their contact address and the location of the area code that their provided phone number.

If their address is in California, their area code is from Chicago and their IP is from somewhere in Turkey, odds are it's fraudulent.

These sorts of checks can be automated or done by hand when the order is received. If you're still not sure of an order, a good step is to verify the client's phone number with the credit card's issuing bank. If they don't match up, tell the client they need to provide the phone number associated with the card. Call that and verify with the true owner of the card and you're probably safe.

One last thing that we've done in the past is send them the "THE FORM" which we ask them to photocopy the front and back of the credit card and their driver's license and fax it back to us. Unfortunately this, like pretty much any step can be tricky to verify 100% in some cases. There are some real photoshop whizzes out there who will go to the end of the earth to get something for free.

In the end, if you think an order is fraud, it was never really a sale to begin with and you should drop it immediately.

we ask them to photocopy the front and back of the credit card and their driver's license and fax it back to us.

Yikes. As a customer, I would never do this. It seems like its just asking to be a victim of identity theft. Also, isn't it against "the rules" to get a copy of front/back of a cc?

As a merchant, however, that would pretty much protect you from fraud. I bet you get almost no chargebacks at all.

--Tina

We've only done it in very very rare occasions when we're already pretty sure that they're a fake and we want to see how far they're willing to go. Something that was photocopied and then faxed has pretty much lost any real value to it already. It's when they come in absolutely pristine that you know it's a shop job.

Yikes. As a customer, I would never do this. It seems like its just asking to be a victim of identity theft. Also, isn't it against "the rules" to get a copy of front/back of a cc?

Do you think the surfaces of your card are somehow invisible when you hand it to a waiter or cashier?

Theres truly no reason for a front and back copy. If you have the customer at your physical location, have them sign a receipt stating that in exchange for your products and/or services the card holder agrees to pay said amount. Have them Sign, and then buy a credit card imprinter. Something like this: http://www.usamerchantsolutions.com/cgi-bin/commerce.cgi?preadd=action&key=N-A4850 (I do not know the creditability of that company, I am just using their product as an example.) This would inevitably prevent charge backs for legitimate customers.
The reason you are NOT allowed to copy the back of a card is because the CVV number. You only need the front copy and the signature to prevent charge backs. I handle the charge back's at work, and whenever we receive one from our merchant, we either send them the signed receipt with the card imprint, or we send them the digital signature(from our signature capture boxes) and the report stating that the card was swiped and not manually entered. This is always more than enough proof to prevent our charge backs. I don't understand why so many people have trouble with these, it is so simple to prevent them, and when they do happen to reverse them. But that is neither here nor there.

Did you ever try Fraudgate, I havent tried it, but its another layer of security.

Unfortunately the only way to truly prevent fraud is have the customer present. According to Visa, Mastercard, Discover, Amex, if you feel it necessary, you can request the cardholders State Drivers License to verify identity.

Cody

Well, talking about getting a physical imprint of their card is sort of pointless .. considering probably 99% of the companies here don't have "walk in" customers.

Asking for a copy of the the front of the card only is not very helpful, since it does not contain a copy of the signature.

The point of asking for driver's license and also front/back copy of the card is so that we can easily compare the signatures and the names.

Otherwise, creating a fake "front" of the credit card is pretty simple. But most folks would not bother creating a fake driver's license *and* back of the credit card.

Anyway.. we've done this for years (asked for front and back of credit card for some orders) and have never had a problem with visa/mc. We've fought several successful chargebacks and won because we had both.

Asking for a copy of the the front of the card only is not very helpful, since it does not contain a copy of the signature.

The point of asking for driver's license and also front/back copy of the card is so that we can easily compare the signatures and the names.

I don't sign my credit cards and I'm certain I'm not the only one.

I don't sign my credit cards and I'm certain I'm not the only one.
A credit card is not valid without a signature of the cardholder on it.

When you use your card at a physical location, the merchant is supposed to compare the signature on the card against the signature on the sales slip to confirm authenticity.

I don't know if this is true or not, but someone once told me that it is written into the merchant agreement from visa/mc that if they see a card WITHOUT a signature on it, the merchant is supposed to deny the sale and call visa/mc to request power to either destroy the card or force the cardholder to sign the card.

When I worked in retail (many years ago), I remember being specifically instructed to check the signature on the card against the sales slip. If the signature on the card was missing, we were instructed to tell the customer they could not complete the purchase using that card.

The photocopying front/back isn't illegal it's just illegal if you store that data online somewhere and/or accept it in an insecure fashion (at least from what I have seen/heard and been told by numerous merchants).

Mrzippy, I don't see the part where I said that what I said was geared towards the whole industry. I was giving a suggestion for people that do have walk-in customers.

Is it a possibility for an order to get branded as a FRAUD in a situation where a client miss type CC info ...???

Is it a possibility for an order to get branded as a FRAUD in a situation where a client miss type CC info ...???

So they punch in the numbers incorrectly, turns out the credit card number is yours. Do you wanna pay for their hosting bill?

So they punch in the numbers incorrectly, turns out the credit card number is yours. Do you wanna pay for their hosting bill?

Well it has to be a match, i mean the card no , address, CVV and everything else has to match with eachother otherwise it wont go through so the chances are very unlikely someone will accidentally get through to somebody elses CC unless of course they have full CC details.

Understandably so, I am just explaining how it could be considered fraud.

The word "fraud" is thrown around these days like no other.

Fraud is a felony. It is a real crime. Its not somebody misentering credit card details, its somebody phishing somebody elses information, somebody stealing a credit card, somebody committing a crime. Don't use the word fraud if you're not dealing with fraud.

Hello everyone

My question is what is the best way to deal with a fraud order and without losing the sale..?

WTF??? If it is a fraudulent order, you will lose the sale. That is sort of the definition of fraud.... it doesn't really exist.