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  1. #1
    Join Date
    Feb 2004
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    305

    credit card issued in USA, why is it important?

    I noticed that the majority of US online stores request that your credit card sould be issued in USA to allow you to use it. In the top of these sites is newegg.com. Zipzoomfly.com has a system that can recognize whether your card is issued in USA or outside USA, how can they do it??

    Why do they care if your card is issued in USA or outside USA? even if you're going to send both cards sides, an authorization page to charge and ID, thye won't accept it!

    The only site that you'll never face any problem with it using your card wherever it's issued in, that's Amazon.com... it accepts any card, even if your billing address is different of the shipping address!!! how do they handle their orders!! don't they face chargebacks?!

  2. #2
    Join Date
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    I would suggest opening a buisness account with paypal, then add funds to your account, and then just use the virtual debit card on the withdraw part of the account.

  3. #3
    Join Date
    Feb 2004
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    305
    Thanks RandyT , I'm not looking for a solution, as I already have US mastercard, I just don't know what is the reason lies behind this policy!

  4. #4
    May be they can process only US cards or work only for US market
    I don't see any other reasons not to accept international cards.
    But I noticed strange things in some US processing networks.
    We have international VISA card and we've tried to buy something in US
    The shop said they didn't get authorisation and that's why the order was canceled but we saw the authorisation transaction on our card. Strange....
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  5. #5
    Join Date
    Feb 2004
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    May be the transaction was declined, and it's pended in your statement

  6. #6
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    There can be many reasons for this to be the case.

    First and foremost, the most common reason for a transaction decline is that the issuing bank declines the charge. When a transaction authorization is attempted, the issuing bank is queried first. That is the most common source of an approved or decline response. (There is more to it than this and provisions for "stand-in" processing in case an issuing bank doesn't respond on the transaction quickly enough but this stuff is beyond the scope of this topic)

    That being said, it is definitely true that some merchants opt not to accept international cards at all due to the inherent higher risk that exists. And the statistical fact is - there is close to 8-10X greater risk of loss with an international card vs. a U.S.-based purchase, for a U.S. merchant. Needless to say, it is a staggering statistic and something that many merchants are concerned about.

    There are a number of ways that an international card can be detected - ranging from simple ways such as the address details being specified or by IP as well as looking up and cross referencing the BIN on the credit card to see if it is a domestic or foreign issuer.

    Other merchants may be willing to take on that increased risk and liability - but their bank may not. So sometimes you have a situation where a merchant's bank will "scrub" out certain foreign transactions based on the issuers inbound BIN on the transaction - the end result is that the transaction is declined on the acquiring side.
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  7. #7
    Thanks for explanations but this policy makes ordering process like a hell.
    We have to send tons papers and passports to confirm that we are we
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  8. #8
    Join Date
    Jan 2004
    Location
    Germany
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    359
    Originally posted by touol
    Thanks for explanations but this policy makes ordering process like a hell.
    We have to send tons papers and passports to confirm that we are we
    The solution is very simple, donīt buy from that company and move on to another - if they donīt want your business, donīt try forcing it on them. Maybe also buy the product in your own country and support your national economy. But really, I wouldnīt try any longer than some minutes before I would move on to another company / shop that accepts my card with proud - life is to short to waste time with that.

  9. #9
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    Feb 2004
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    305
    We care about the whole world, not only our countries ,thus, we believe in supporting the universal economy not the national one

    And the good items cannot be found in many sites so that we can simply go from those who don't accept our cards to those who do.


    cdgcommerce:

    What is BIN?

    I hope Verified by Visa and SecureCode can spread ASAP so that we get rid of these annoying policies

  10. #10
    Join Date
    Aug 2003
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    A BIN is a Bank Identification Number. Both Issuing & Acquiring Banks have their own BIN # as a means of tracking transactions and other data.

    If you look at a Visa or MasterCard, the first 6 digits are the BIN # that identifies the issuing bank.
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  11. #11
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    Feb 2004
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    cdgcommerce:

    Is there a way to know from which country the card is issued? I've a virtual visa card, and I need to know where is it issued

    Thanks

  12. #12
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    Sure, if you can send me the 6-digit BIN I can look it up and let you know.
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  13. #13
    Join Date
    May 2005
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    26
    It always saves a lot of trouble to contact the company's sales department and ask whether they accept credit card AB from country XYZ and what confirmation process is used to verify the order. Then decide whether it's worth the effort to do business with this company.

  14. #14
    Join Date
    Mar 2001
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    1,434
    Maybe because many US merchants get hit with 4-5% per transaction when accepting a foreign based card. It is often double or higher than accepting a US based card.

    - John C.

  15. #15
    We'd happy to support national economics but very often you may buy better services outside own country. Say locally Dedicated hosting costs 79 EUR/mo
    The same thing and even better I can buy in USA for 53 USD/mo. It is not quite difference but in long-term period it counts to good money.
    Credit card processing, online check/ACH and EuroDebit payment solutions for the Internet merchants
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  16. #16
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    JohnCrowley makes a good point in that the cost - with most merchant processors - is higher when accepting a foreign/international credit card vs. a regular consumer credit card.

    Thus, it is always good to confirm what the cost will be on International/Foreign cards as well as Corporate/Business cards with any merchant processor prior to signing up.
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  17. #17
    Join Date
    Feb 2004
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    cdgcommerce:

    the first 6 digits of the card are: 468904

    I hope I understood what you mean correctly

    Thanks in advance

  18. #18
    Join Date
    Apr 2005
    Location
    Holland
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    Transactions are usually blocked by BIN number of the card. First six digits in the card number are called BIN and have the issuing bank and it's country encoded there.
    If the BIN is different than the billing adress any good fraud scrubbing system will decline such a transaction.

    A lot of US based companies though, blacklist BINs which belong to third world (Russia, Ukraine, China , Lebanon etc...) irrelative of the billing adress, which usually in fact not only does not help in terms of chargebacks but even makes the situation worse. While it is true of course that most fraud occures from third world countries, we have yet to see a single fraudulent transaction where CARD ITSELF (!) comes from a third world bank. All these Russian, Chinese or Zimbabwe credit card frauders never use cards which are issued in their own countries, and not only because its easier to get US stolen card numbers but also because the danger of getting punished for stealing card numbers is much greater if cards themselves are stolen in the same country where the frauder sits. So in relation to chargeback this protection is useless. On top of that, there are always a few legitimate transactions (after all in Russia the population is what, 140M? and in China, 1 billion?) which are declined because of this block. Now if you remember Visa and MC penalises chargebacks based on their percentage to sales, so logically the less solid sales you have, the higher your potential chargeback rate will be.

    As for acquirers who sometimes have their own fraud scrubbing - it does happen and when it does, it's a pain in..... :-) because most usually acquiring banks, just as other banks, rely on larger banking software providers, who provide software solutions for acquiring or issuing. Now, a standard acquiring software package starts at 500K USD for a single bank (usually in countries like Russia again, in good countries it can cost up to 4 million USD easily). One does not have to be a rocket scientist to realise that this is extremely profitable software market which of course is havily occupied. Problem is - quality is not really the factor which a bank has in mind when they buy 500K USD software, what they have in mind depends on where they are, if they are in USA or EU than the factor is which of these software developers has more nice promotion or which of these software developers relatives are more connected to the bank they sell it to, in third world countries it is even worse, it depends on how much money the sofware developer will return in cash after the purchase to the manager in the bank who authorised it.

    So these software companies are huge and really very remote from internet commerce, and their fraud scrubbing engines usually are difficult to understand and rarely are reasonable.
    Not always of course.
    Ido Schiferli
    Marketing Manager

    ChronoPay

  19. #19
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    Aug 2003
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    moh2004, here is the bank that corresponds to that BIN:
    ST. KITTS-NEVIS-ANGUILLA NATIONAL BANK LIMITED

    Hope that info helps you out!

    Regarding your comments above, Ido, I'm definitely inclined to agree with you in that some of the software that certain banks and acquirers use for fraud scrubbing is not appropriate for an Internet environment.

    In fact, some of the risk databases that a few companies have built were based on retail (card present) transactions and thus they do not really correspond at all to an Internet (card NOT present) envirionment for a variety of reasons.

    All that being said - I think that by employing the right kinds of fraud detection & scrubbing, the results can be phenonemal. I know that I have seen merchants who were very much in excess of Visa/MC compliance guidelines get back in - and under - those thresholds by employing the right set of risk logic and fraud detection.
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  20. #20
    Join Date
    Feb 2004
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    305
    Thanks a lot cdgcommerce, but where this bank is located in?!

  21. #21
    Join Date
    Feb 2004
    Posts
    305
    oh I got it

    so ST. KITTS is a big island in the Eastern Caribbean. It's near USA, just above the BAHAMAS, so is this card considered to be US issued card?

    Here is the bank site:
    http://www.sknanb.com

    I could build a better looking site in 2 hours

  22. #22
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    Yep, I am pretty certain you and a lot of other WHT'ers could build a much better site than that one from the looks of it.

    In terms of it being a U.S.-issued card, I would say that strictly speaking it would fall into the Carribean "territory" of Visa/MasterCard instead of being a domestic U.S. card.

    Thus, my assumption is that the above BIN would clear as an International/Foreign card depending on the variables involved.

    Sometimes it can be a bit confusing. For instance, even though Puerto Rico is a U.S. territory, from the Visa/MC standpoint it is considered to be a different zone and thus a normal U.S. merchant processor could not approve an account from that area.
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  23. #23
    Nice post guys! Did someone call China a third world country???

    92 % of world scooters sold last year had a “Made in China” on them.

    72% of all toys sold last year had a “Made in China” on them

    Look around you, chances are that 60% of what you see are made in China

  24. #24
    Join Date
    Aug 2003
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    Chesapeake, VA
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    I agree that it would be foolish to dismiss China as a force to be reckoned with. I think that in the years to come, China will definitely be one of the top economic powerhouses in the world.
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    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
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