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Thread: fraud

  1. #1
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    Jun 2003
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    * fraud

    I use authorize.net adn their verification sucks. I think is because they want to push on you their "fraud suite detection system" which is worthless, same thing they want to charge you for using their recurrent transaction service, I developed my own little utility to recurrently charge cards.
    My solution to chargeback because of fraud was to use the AUTHORIZE_ONLY option which does not captures the transaction for processing. this way I have up to 30 days to validate the transaction and avoid charge backs, I have been using this for the last 6 months and my chargebacks are rediced to zero, as they said already, fraudulent orders are usually easy to spot.

    What other services is people using out there with better validation than authorize.net ?
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  2. #2
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    IP blocking of known fraud countries via APF. While that does eliminate the potential for legitimate orders, it cuts down on the fraud orders considerably...
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  3. #3
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    Re: fraud

    Originally posted by mdscorp
    I use authorize.net adn their verification sucks. I think is because they want to push on you their "fraud suite detection system" which is worthless, same thing they want to charge you for using their recurrent transaction service, I developed my own little utility to recurrently charge cards.
    My solution to chargeback because of fraud was to use the AUTHORIZE_ONLY option which does not captures the transaction for processing. this way I have up to 30 days to validate the transaction and avoid charge backs, I have been using this for the last 6 months and my chargebacks are rediced to zero, as they said already, fraudulent orders are usually easy to spot.

    What other services is people using out there with better validation than authorize.net ?
    authorize.net allows your to tighten down the verification settings from the settings panel. (Like address has to match name etc)

    If you call them, they will walk you through it.

    By default it's not set very high.
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  4. #4
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    Just one thing - be very careful with the pre-auths. Some of those pre-auths might only be for a few days (it varies per issuing bank).

    If you are worried a lot about fraud - you might check out the payment electronic gateway by Verisign called Payflow

  5. #5
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    Feb 2005
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    New York.
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    This situation is a annoying, I was considering using authorize.net but am afraid of chargebacks, fraud.
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  6. #6
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    There's absolutely no substitute for human intervention. Voice verify all domestic orders and look over the foreign ones very carefully. When in doubt, refuse the order.

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  7. #7
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    I am not sure if you are a web hosting company or not, but if you use a billing system such as Lpanel, WHM Autopilot or ModernBill, you can use a service called Varilogix, which does phone verification, as a real fraud person would never put their correct number. It has a 99.99% guarantee that you will not get any fraud orders as well. We have been using their services since August of last year, and so far, 0 fraud orders... Amazing huh? Also, regarding billing managers, the people over at Varilogix will be happy to create a API for you so you can integrate it with your own billing manager just in case you arn't a web host. But phone verification is the best way, I personally think.
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  8. #8
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    I use a system called "Moderate all orders" and "Call all new customers". Works like a charm!

    H-Sphere has a nice security feature that with a click of a button, it does a reverse phone lookup on the phone number, so I can tell whether or not the phone number matches the name on the card. In either case, I call the number.

  9. #9
    Join Date
    May 2005
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    Atlanta
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    What makes people wish to steal things from others?

    Stealing bread as a starving citizen of a third world country underneath a dictatorship is one thing, but stealing identities and money as a middle-class person, living comfortably in a democracy is just plain wrong.

    I hope they all get caught.
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  10. #10
    Join Date
    May 2005
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    Arizona
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    Re: fraud

    Originally posted by mdscorp
    I use authorize.net adn their verification sucks. I think is because they want to push on you their "fraud suite detection system" which is worthless, same thing they want to charge you for using their recurrent transaction service, I developed my own little utility to recurrently charge cards.
    My solution to chargeback because of fraud was to use the AUTHORIZE_ONLY option which does not captures the transaction for processing. this way I have up to 30 days to validate the transaction and avoid charge backs, I have been using this for the last 6 months and my chargebacks are rediced to zero, as they said already, fraudulent orders are usually easy to spot.

    What other services is people using out there with better validation than authorize.net ?
    Are you using CVV2 and AVS from the authorization response. Those two tools are very powerful for catching fraud. The company I work for has a home brew for scrubbing, but its based on high risk subscription services so it has to be strict and accurate. But in most mainstream biz's those two tools tend to be enough protection.

  11. #11
    Join Date
    May 2005
    Location
    Arizona
    Posts
    11
    Originally posted by coreybryant
    Just one thing - be very careful with the pre-auths. Some of those pre-auths might only be for a few days (it varies per issuing bank).

    If you are worried a lot about fraud - you might check out the payment electronic gateway by Verisign called Payflow
    Typically an auth lasts for at least 7 days, some going as high as 30. As you state, it varies from bank to bank. One thing to remember is the interchange rate. You lose it if you dont settle the transaction in 48 hours for discover and 3 days for Visa/MC. Personally, I think Verisign's system is okay but cybersource's is much better. Check them out.

  12. #12
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    Jun 2004
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    Originally posted by TheNetway
    I am not sure if you are a web hosting company or not, but if you use a billing system such as Lpanel, WHM Autopilot or ModernBill, you can use a service called Varilogix, which does phone verification, as a real fraud person would never put their correct number. It has a 99.99% guarantee that you will not get any fraud orders as well. We have been using their services since August of last year, and so far, 0 fraud orders... Amazing huh? Also, regarding billing managers, the people over at Varilogix will be happy to create a API for you so you can integrate it with your own billing manager just in case you arn't a web host. But phone verification is the best way, I personally think.
    This is smart. All the information on all our fraud orders was correct except the phone numbers. I think this would be the best solution.Thanks TheNetway!
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  13. #13
    Like Tina said, there is no better way than human verification. In our experience, voice verification and other means has nearly eliminated any types of charge backs due to fraud. In the end, you have the power in your own hands to verify orders.

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