Currently we have telephone verification enabled in our system through maxmind, however the person will only be asked to verify their account via phone if their risk score is above a certain point.

My question is should I continue this method or should I make all orders verify via the phone? My worry is that we may be losing some potential orders noting that people would have to verify their account via a telephone verification call.

We have been having a lot of chargebacks lately so I am trying to do my best to minimize this or else our merchant may kick us out.

not for shared service, we do it for Reseller, ecommerce hosting customers, because those customer will need custom solution as well.

If your getting a lot of chargebacks. I would recommend you manually create the accounts and or confirm the orders. I personally would verify all orders. Hosting is one of those business types that get a lot of fraud orders.

All the best,

We use WHMCS, so after it goes past maxmind verification, we do have to approve the orders, maxmind doesn't always get it right though and sometimes the order does look legit which is where our problem comes in.

Always use AVS to get the best rate for your credit card processing.

What avs settings do you have?

rather than going for calls you can you e-mails,for smaller order,but for bigger orders you can Go with telephone calls.
We are using this technique for our online pharmacy,which sells generic Drugs Online.

Jimmy

definitely doing that will help to decrease fraudulent payments , but you won't stop them

Gharibe you are right we really cant stop them, but it is usefull to decrease deceitful payments.

Unless you are processing hundreds of new accounts per day... you should take 5 minutes and *call* the new customer.

Then you can actually talk to them and confirm the signup/payment is legitimate.

We do this for every new customer, and they LOVE it. They are always so surprised that someone is actually calling them to talk personally and make sure their questions are answered, etc.

This helps to keep your customers around, even if (when) there are problems with the server later...

If you are operating a totally impresonal business, then the customer has no incentive to stay with you when they find another company offering the "same thing for $1 less".

Very good point, Mr. Zippy!

what kind of charge backs do you even get ? and do you get charged for every charge back or you have a lower fee.

Yes, every customer.

We use WHMCS, so after it goes past maxmind verification, we do have to approve the orders, maxmind doesn't always get it right though and sometimes the order does look legit which is where our problem comes in.

Use Varilogix, never ever had a problem there. Maxmind is ok, but does not match Varilogix imho.

The problem I find with phone verification is that, if a fraudster is using someone else's details to register with you, why would they use that persons phone number as well? Surely you'd just end up confirming the order with the fraudster them self, and at the end of the call everything seems fine?

From what I have seen, most fraudsters do not want to give out a phone # that they can be directly reached at. They are happy to provide a working phone # - just not one that you can call and directly speak to them over.

Their normal modus operandi is to let you leave a voicemail and then they will call you back from another line with caller ID blocked.

In addition, certain phone verification systems have the ability to determine whether or not a call is originating from a landline, mobile phone or VOIP system (like Vonage, etc.) which can be useful from a fraud/risk assessment point of view.

When combined with other fraud scrubbing tools such as the full MaxMind details and a manual review, it is usually possibly to get rid of the vast majority of the fraudulent orders that come in.

Some other key red flags to look at are Anonymous Proxy users and Bank BIN/GEO non-matches. (i.e. the credit card BIN is for a bank in Indonesia but the cardholder claims to be in the U.S. and so forth)