Hi, Should I remove the option for customers to select to have their order sent to a different delivery address? We are an online retailer and use Paypal Pro as our payment gateway. In the past we have had a number of charge backs due to fraudulent transactions and where the card holder claims they have not authorised the use of their card. I have come to recognise potential frauds by looking for; • Shipping address is different to billing address • High value orders • No telephone number • Free email domain such as a hotmail account. In the past I have tried to verify suspicious transactions by using 192.com and directory enquiries to verify names and addresses or ultimately sending a letter to the billing address asking them to confirm by email that they have placed the order. However, of the fraudulent ones that get through, Paypal always holds us libel and I am assured that this is no different to any other payment gateway provider as they claim that they can never refund the merchant where a bank card has been used unlawfully and have to charge the amount back to the card holder. Nevertheless, business is going well and we are getting many more orders (lucky us), but with this we have seen an increase in the number of high value orders where the customer requests they are sent to a different address and we do not have the time to verify if these are possibly fraudulent or not. Consequently, the only solution I can see to this is to remove the option for customers to select the items be sent to a different address and state that we only ship to the cardholders address. I don’t want to do this and wish to give customers the choice. However, can anyone suggest an alternative? Do you think that by removing this option it would put customers off making the purchase once in checkout? Thanks
If your shipping out products, I would remove the ability to have their orders shipped to a different address. However if they insist on having it shipped to a different address, I would verify with them over the phone.
What store platform are you using? Do you have McAfee secure on your site or other security? Some store platforms, can help reduce the fraud. I have used X-Cart in the past and they have a fraud check built in which seems to help prevent many fraudulent orders. If I were you, I wouldn't remove the ship to another address feature, because many people buy things as gifts. They are not always shopping for themselves. From looking at your signature file, I will assume that is your store? Also, you should be blocking known fraudulent orders on the server side. Usually when orders are made in a shopping cart the IP is also recorded. You can then block it on your server or block a range of IPs. You can also talk with your shopping cart support to ensure that your website is 100% compliant.
Hi and thanks for the reply. I have been considering McAfee Secure, but I am unsure how this will enhance fraud prevention. What exactly does this offer and how can it help? Regards
Its not the right option to do so. This is due to many reason such as maybe the purchaser want to give surprise present to their family member. You can use phone verification to prove that the buyer is legit.