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  1. #1

    Question instant account activation

    Hello All,

    I'm getting ready to launch our new webstie. I'm pondering the idea of instant account activation for our shared webhosting products. The only thing i'm kinda worried about is the fraud of course, so I will most likely get the Modernbill fraud service. My question is, has anyone found any major problems with doing this?

  2. #2
    Join Date
    Oct 2002
    yes, it is a bad idea.

  3. #3
    Join Date
    Dec 2004
    San Francisco, CA
    If you use some automated telephone system to verify numbers, and screen all orders with high fraud scores, automated activation can work. See no reason why. - Build, Share & Embed - Windows VPS Hosting, ASP.NET and SQL Server Hosting
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  4. #4
    Join Date
    Nov 2003
    With shared accounts I do not see much of a problem with it, especially because you intend to use some kind of antifraud system.

    If you were to offer VPS or dedicated servers, then I would certainly not intend to use instant setup, as it is way too risky. From experience we can say that there is much more abuse with those than with shared accounts.
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  5. #5
    Join Date
    Sep 2003
    Even with fraud protection, a small percentage of fraud orders will come through. You should do a manual screening as well (after time, you will eventually be able to spot fraud orders manually by looking for certain signs)...

    Offer 24 hour setup turn around in conjunction with fraud protection.

    If you think the profit will be higher than the costs of cleaning up spammers that get through and also chargeback fees, then go with instant activation. I personally wouldn't.
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  6. #6


    I don't recommend it because of fraud, too. But I see what most of customers want instant activation.
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  7. #7
    Join Date
    Feb 2001
    West Michigan, USA
    I've used many different fraud screening solutions over the years. Nothing beats manual screening. If you offering auto-activation, some fraud WILL slip through.

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  8. #8

    I was going to allow for instant activiation and every morning review all the new orders to make sure they look legaitmate, and mabye even call on all the new orders to confirm. For a start that might be a solution. There would be CVV and AVS verifcation which would help the chargebacks. The only thing i'm worried about is fraud orders with domain registrations. If a domain registration order goes through that is fraud and I end up paying the $$ for the domain. Does OpenSRS credit for this?

  9. #9
    Join Date
    Sep 2006
    You can use a fraud protection system such as FraudGuardian to try and verify the order. If the software feels there is a chance the order may be fraud it will not activate the account.

    The problem in some cases is the billing software does not work as advertised when it comes to automation. (IE Modernbill)
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  10. #10
    Join Date
    Dec 2004

    It is not a bad idea. It provides something extra to customers. However you have to properly secure it.

    Main issues you'll face is a fraud order that then it's used for spamming or illegal content. It can bring down the server or even worse, have your IP nullrouted.

    So I would first make all signups under one special IP and once customer is verified move the account manually to your server main IP. As well, ensure that no process can overuse cpu and if you detect high cpu load, the server itself disables that IP automatically.

    This kind of setup enables signups to be processed even if you cannot check your server in 24h.

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  11. #11
    Join Date
    May 2002
    Internet / Colorado
    I would suggest handling domain orders manually, that way you can process them later and screen.
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  12. #12

    hosting activatation

    Umh... never go for instant account activation. Await your payment to be clear first.
    It has happened to me before.
    That is my best advise. When payment clear, them activate the account.
    Good luck !
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  13. #13
    Join Date
    Dec 2000
    I agree with prudent - just manually review each one and activate. This is with years of experience going back and forth - I personally review each order now.

    Fraudulent orders will often be for your most expensive package. "Why not?!"

    I remember having a ver high-end package out there for like $75/mo and got a sign up. I was clicking my heals when I got the message on my phone. Then I realized it was an @yahoo address. Doh! Sure enough...

  14. #14
    Join Date
    Sep 2005
    Well, you really are not loosing anything besides a domain which is on average, $10 per year.. So you are loosing $10 for every fraud order... I think you need to look at your statistics and decide what percentages are legit versus fraud.

  15. #15
    Join Date
    Mar 2004
    Duluth, MN
    I think it's basically invonvenience: of moving, of learning a new control panel, new host, getting billing set up, risking ending up somewhere worse than you are now. One of the best things a host can do is to offer to do the move for them and get things set up till they work the way they did or better for free.
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  16. #16
    Thanks for the respones. I'm sure this topic has many intersted. After doing some research, I'm most likely going to go with it, I really see no risk.

    When Customer orders on website, Credit card is BILLED (AVS and CVV must match or will decline credit card.)

    Plan on setting up MOdernbill's Fraudguardian.

    If all passes, auto-provision account on server.

    Every day I manually check orders to see if they look ok and if not, call on them...

    If order is bad, easily suspend account (or delete) until client verifies via phone.

    WIth this in place, I think it should workout fine... Anyone try this method?

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