H0stD3m0n
08-17-2008, 07:37 PM
It just seems ignorant to overlook the direction the buyer/seller relationship is going though. The financial institutes almost always side with they’re cardholders while Merchant Gateway Processors give in and Customers won’t start taking financial responsibility for their purchases. Guess that leaves the Merchant holding the short straw.
Although Internet fraud has been on the rise for years, we have always chalked up “Internet fraud as just part of running an online business.”
There are some basic methods for preventing fraud like:
Using Varilogix Fraudcall and Maxmind to help determine the risk assessment of fraudulent orders placed.
Screening orders Manually to reduce charge backs and unauthorized signups
Performing Phone Verification
Rejecting high risk countries
Blocking orders where the user is ordering through a proxyIn an effort of dramatically reducing refund rates on e-products, all downloadable products and/or electronic services we sell such as web design solutions, hosting plans, etc, *must* also be shipped with something tangible such as a CD-ROM copy, with tracking and preferably with a delivery signature.
Without some form of proof-of-delivery, we will have a needlessly high refund rate and a zero (0) chance of winning chargebacks, and will lack documentation available for verifying disputed accounts.
We recently started including a copy of the proof-of-delivery tracking, a copy of the transaction receipt showing a positive AVS (address verification) and card code match, and any customer support tickets or e-mails from the customer that would prove they did indeed receive the product.
The advice given here time and time again to combat PayPal temporary hold of funds due to buyer claims of authorized charges has been to type in "intangible". Truth is, this method only frustrates all parties involved and simply stalls the investigation, which will end up reversed in favor of the buyer. This method can also get your Account taken away in some cases.
My method is not fraud proof by far as there are many other types of claims. Most other claims can be fought with common sense and the methods mentioned above.
The percentage of Fraud orders hit nearly 60% with 3 out of 4 orders resulting in chargebacks for us a short time ago. Now fraud only accounts for about 5% of our orders. Luckily, we still do alright for ourselves but these kinds of trends can result more harmfully on companies with less order volume.
I hope this helps those going through the constant battle of chargebacks and PayPal claims properly educate on dealing with fraud.
Although Internet fraud has been on the rise for years, we have always chalked up “Internet fraud as just part of running an online business.”
There are some basic methods for preventing fraud like:
Using Varilogix Fraudcall and Maxmind to help determine the risk assessment of fraudulent orders placed.
Screening orders Manually to reduce charge backs and unauthorized signups
Performing Phone Verification
Rejecting high risk countries
Blocking orders where the user is ordering through a proxyIn an effort of dramatically reducing refund rates on e-products, all downloadable products and/or electronic services we sell such as web design solutions, hosting plans, etc, *must* also be shipped with something tangible such as a CD-ROM copy, with tracking and preferably with a delivery signature.
Without some form of proof-of-delivery, we will have a needlessly high refund rate and a zero (0) chance of winning chargebacks, and will lack documentation available for verifying disputed accounts.
We recently started including a copy of the proof-of-delivery tracking, a copy of the transaction receipt showing a positive AVS (address verification) and card code match, and any customer support tickets or e-mails from the customer that would prove they did indeed receive the product.
The advice given here time and time again to combat PayPal temporary hold of funds due to buyer claims of authorized charges has been to type in "intangible". Truth is, this method only frustrates all parties involved and simply stalls the investigation, which will end up reversed in favor of the buyer. This method can also get your Account taken away in some cases.
My method is not fraud proof by far as there are many other types of claims. Most other claims can be fought with common sense and the methods mentioned above.
The percentage of Fraud orders hit nearly 60% with 3 out of 4 orders resulting in chargebacks for us a short time ago. Now fraud only accounts for about 5% of our orders. Luckily, we still do alright for ourselves but these kinds of trends can result more harmfully on companies with less order volume.
I hope this helps those going through the constant battle of chargebacks and PayPal claims properly educate on dealing with fraud.