eCommerce Tycoon

**sunwukong** · 06-09-2010, 03:45 AM

I work for a business that sells small high value electronics online with credt card payment that is often the target of credit card fraud.

We use worldpay for processing payments and this gives us security checks such as cvv, AVS and a few others. For suspicous transactions we also call the telephone number giving in the billing details and ask for photos of ID and credit card.

All this helps but we still have too many chargebacks from credit cheats. Part of the problem is we have manty genuine customers who want their order shipped to an address different from the billing address and many orders in countries where AVS is not used.

There are problems with these methods such as
-telephone number in billing details may not be the real number so a phone call would not work
-name in billing address may not be real so photos of ID and credit card may not work

Spent a lot of time talking to worldpay fraud team but the only result of all this was 3D secure/verification which is not good because it puts genuine customers off.

I've search this forum and read a few threads that had some very good ideas but I'm still after suggestions and advice on what can be done to deal with the problems of our current security checks and reduce fraud with out losing genuine customres.

I would really appreciate hearing how the more experienced members mimizie fraud and any advice they have to offer.

**blue-dreamer** · 06-09-2010, 04:15 AM

I'd suggest not allowing different shipping addresses except for known/trusted customers.

**sunwukong** · 06-11-2010, 03:46 AM

Quote:

Originally Posted by blue-dreamer

I'd suggest not allowing different shipping addresses except for known/trusted customers.

A good idea. Unfortunately in our line of work, we can't afford to ignore customers which shipping addresses different to billing addresses.

What I am trying to do is learn how to reduce the risk of fraud from these kind of customers.

**SportyDog** · 06-20-2010, 11:25 PM

Quote:

Originally Posted by sunwukong

A good idea. Unfortunately in our line of work, we can't afford to ignore customers which shipping addresses different to billing addresses.

What I am trying to do is learn how to reduce the risk of fraud from these kind of customers.

You have to have a variety of research methods. I have a chart of flags my employees have to look for, and some warnings built into our order processor to flag orders that look bad.

Then you have another batch of approval procedures to verify Fraud.

In the end your goal is not to get rid of fraud but to reduce it while not losing too much business and at the same time, not costing too much money in management. it's a fine line that is much tighter when you're selling electronics.

I would look into a cart that has Verified by Visa that will cut out most of your fraud.

Also I believe the more sophisticated your site looks the less fraud it will attract, but that's just my theory.

**abeltenny0210** · 06-22-2010, 03:48 AM

You should call the owner of the creadit card if you thought it a fraud.

**blue-dreamer** · 06-22-2010, 01:35 PM

Quote:

Originally Posted by sunwukong

A good idea. Unfortunately in our line of work, we can't afford to ignore customers which shipping addresses different to billing addresses.

What I am trying to do is learn how to reduce the risk of fraud from these kind of customers.

As SportyDog said, having a checklist of warning signs is good to have. If you have to allow different shipping addresses there are a few obvious signs, the main one I've found is a Delivery country different to Billing country, eg billing in the UK shipping to Nigeria!

Perhaps you could telephone the billing contacts to ask a few questions, if their card has been scammed they won't know anything about the order. Doesn't have to be every customer but only the ones that get flagged up by warning signs.

**rolda hayes** · 06-25-2010, 12:09 PM

I think the best advise would be to use Mastercard Secure Code and Verified By Visa.

If this is used by the customer, then you payment is 99% guaranteed. I say 99% because NOTHING is totally guaranteed by banks - they love washing their hands of any responsibility...

But the argument is that the customer would have had to of been lax with the security of their password if somebody else has used it.

**ThailandForum** · 06-25-2010, 12:13 PM

I always thought under TOS the products have to be shipped to the billing address, if that is the TOS then maybe an idea to stick to them with unknown customers.

**chrishirst** · 06-25-2010, 07:36 PM

Many of the bigger sellers like Amazon for example do allow shipping to a different address, because you may be purchasing and sending gifts but you do have to made a purchase to the billing address, and if you add a new address you have to verify your card details.

There are simply some countries NOT to ship to even if the billing adddress IS in the same sountry.

**Colin8ch** · 07-08-2010, 03:07 AM

I would advise any merchant to research these providers directly to find which serve their needs best when looking to decrease ecommerce risks. Most are very easy to integrate and they work with any gateway/ merchant account/ 3rd party reseller, etc.

Using many of their technologies and services you should have a much better opportunity to identify legit vs suspicious consumers when shipping and billing addresses are mismatched.

Geolocation, Reputation, etc:
- Maxmind
- Quova

Device ID, Risk scoring, Proxy busting, ect:
- Kount (sister company to ClickBank)
- ThreatMetrix
- iovation
- Retaildecisions
- the3rdman

Consumer data verification:
- GBgroup
- 192 dot com
- 555-1212
- Integrity.aristotle
- RSA

**Shadrach** · 07-12-2010, 03:13 PM

One thing to do straight away, if you haven't already, is to change your shopping cart settings to charge for the order when it ships rather than when it is placed. We have had several fraudulent sales for high end optics and have learned what to look for in a potential fraudulent sale. Making that change will enable you to look the order over before charging the card and shipping it out.

But unfortunately eliminating 100% of fraudulent sales will be impossible.

**ramirezhenry55** · 07-17-2010, 09:39 AM

I was wondering if you could incorporate paypal to your site. This is safe and secure on both sides and I think a lot of buyers nowadays got paypal to use for online shopping.

**hirenmodi** · 07-21-2010, 08:56 AM

by getting heavy security of transaction and also verify shipping addresses.

**Phoenix1911** · 08-13-2010, 06:23 PM

I use paypal for instance.
It's the safest way i know and nowadays almost everyone who use the web has a paypal account.

**jamesrayenz** · 08-19-2010, 08:06 AM

AVS or Address Verification Service is a simple and easily stolen credit card to reduce their chances of way. When you enter a transaction, make sure you know the street and the card (holder of the ecommerce shopping cart system and enter zip code to receive this information automatically) be sure. Then when the transaction is processed, will approve AVS response codes with one that you know whether or not the card holder zip code match, both match, the match will tell whether or not the match. In the U.S. approximately 75% of transactions are fraudulent AVS mismatches. The one single step in order to reduce fraud on its greatest impact. Use AVS if you get a mismatch, just zero, and the product does not ship orders.</span>

**rolda hayes** · 08-19-2010, 09:13 AM

^ Thanks for that... I understood every word....!

**jfire** · 08-26-2010, 09:43 AM

If the volume of your business is low, you can manually verify financial and address information. Also utilizing https and secure socket layer will prevent hackers from stealing data. Paypal has had some issues with hacking lately, so I would be careful with them.

**cindyfowler** · 09-06-2010, 08:59 PM

Quote:

Originally Posted by sunwukong

A good idea. Unfortunately in our line of work, we can't afford to ignore customers which shipping addresses different to billing addresses.

What I am trying to do is learn how to reduce the risk of fraud from these kind of customers.

In this case,you can require the identity card scanning of the customer,or phone him/her to verify the customers' identity.

**saad.ilyas** · 09-22-2010, 03:14 AM

You can avoid credit frauds by using Paypal and Google checkout also for credit card order by avoiding entertain such orders in there are different shipping and billing addresses, if it is necessary to entertain any such order then take some precautionary steps like, Calling at billing address to confirm, verify credit card history, address verification,etc. One more thing which you can do if the order amount is more than $500, that charge partial amount from CC before processing the order or at the time of receiving order and send the acknowledgment email to costumer, so that you will some proves in case of charge-back.