On average a month how many fraud orders do you receive? How many result in charge back?
The reason I ask this question is because a while ago I programmed a fraud database system that worked with paypal. using paypal's IPN (instant Payment notification). All payments where recorded and checked against the fraud database. Payments that resulted in chargeback would be classified as fraud and would warn any other business that received payment from that frauded paypal account. Although it currently is programmed for paypal I could easily add in web domains, addresses, phone numbers just about anything. Oh and it was already investigated with paypal and was found to be perfectly legal as long as I put in a disclaimer that we where not associated with paypal in any way.
I worked on the system for over a year and took it down when I upgraded to a larger server.
would anyone be interested in something like this? If so then I would put it back up totally free mainly for the benefit of the webhosting community.
Not all chargebacks are frauds though. If not-so reputable hosts utilized this, they might be reporting PayPal accounts where legitimate chargebacks were issued due to inadequate service or other such reasons. Or am I missing something?
Well, it does record the chargeback reason from paypal. Plus I have in the past thought about adding a link to where when a chargeback happens it asks the business to put in a reason. Then the response could be emailed to anyone who receives a new payment from that so called fraud account.
Originally posted by TechnicGeek dolay, would a free service like this interest you?
Thanks but we have been to experienced on this and now our sales can guess a sales is fraud without any checking eailsy because those Vietnamese pishers giving signup names, details like, pyoung, toung, cung ting munyg ... hehe
We use the fraud system provided by WorldPay.com, furthermore, our current setup allows us to carry out checks on the client, such as address checks, phone checks, e-mail check and so on before going ahead and charging the client.
We have been able to escape many chargebacks due to this new pre-auth procedure, before we enabled it we got hit with lots of chargebacks. Since introducing this feature via WorldPay.com we havent yet had a fraudulent payment get through, a success I would say
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It checks its own internal. It would take a little time to build an active list of frauds. Basically it records frauds that the community gets and protects everyone in the community from getting frauded by the same frauder. It can also be programmed to keep domains, email addresses etc. The concept is the for all of that.
As a reference guide maybe. But generally, most fraud are via credit card and not Paypal. One of our acquisitions last year have about 10 fraud cases a week. When they realise we are not activating accounts, they left. Now we don't get a single one.
We use the human common sense plus some fundamental tools. unless it's a real person trying to get a free meal, we usually catch them at the point of signup. I mean who in the right mind orders a plan and tick every single addon and pay for a full year (about 800+)
Since we get a managable number of new signups, we still continue our "human fraud detection" system as nothing beats it.