I hate fraudulent orders. Thankfully, I am rather diligent and have yet to have a charge-back, but I know, it's only a matter of time before I process a bad order. My reason for the thread is to find out what methods people are using to prevent fraud. I know there are a lot of companies that will use fraud protection methods, but none that I have seen will guarantee their work, at least not for a 'reasonable' rate. So, here's what I do to prevent fraudulent orders. Maybe you all can share some of your ideas and practices too. Check the IP. If the IP doesn't match the state, there's a red flab. I use reverse IP tools, available online, to match city with the order. And of course, IPs in Indonesia, Ghana and a few other nations are automatically dismissed. But sometimes, the IP is just a little off, so I proceed to step #2 Reverse Address Lookup Using White Pages reverse address for confirming the shipping address is a good method for limiting fraud. If I can't resolve the address or the names don't match, then I go to #3 Call the customer I have probably called over 100 customers because something was "wrong" with their order. IP didn't match, address wasn't registered, they ordered 12 pairs of the same size jeans, whatever... and in ever case, the customers was HAPPY I called. But there are still a few people I called who answered and something was 'odd', so I go to step #4 Ask for the Bank Number It's on the back of the credit card and if they have the card, they will give you the number and you can confirm the order. The Banks are always very helpful and very willing to confirm a billing address and name. And that's about it for what I do. Thankfully, we have yet to have a charge-back, but I also know, this is going to eventually happen to us, it's only a matter of time. What do you guys do? How effective have you been? Is there a place that has a list of fraud emails, names or IPs? If not, I think it would be a good idea. Since I run several sites, there are a few names that seem to arise on a regular basis.
I am surprised that you can phone a bank with someone's credit card number and they will tell you their name and address. Do you have a direct CC merchant account or use a payment processor?
i sell softwares which is why its impossible for me to spend time checking all that.... all my friends sell softwares and they too dont have time checking all that shit.... so what if, if the person dont have time to check IP or call customer's bank or anything you said??? your system is good but its good for people who get few sales a month.... but for me, its not possible because its impossible to handle that much customers for me... because i have to active copies everyday.... and handle customer care, and then i have to update my website everyday and add new downloads.... your tricks is not really effective and still have a risk of getting a chargeback.... i use different trick over paypal to fight frauds.... and the good part is that i dont have to spend any time making sure its not fraud....
when you post this stuffs in the public it won't reduce fraud , it just increase it because lots of those people who place fraud order are reading forums
I don't see how dissemination increases fraud, these aren't exploits. But I would like to see the data that shows the causation. I'm still amazed by how many people are processing orders with bad addresses and non-matching IPs. I can see, how selling digital products would suffer from these methods. But with digital products, if it's a bad order, you're not really 'out' anything. Glad the PayPal method works for you. However, for physical goods, you don't want to get burned on high ticket items. When I process a $12,000 watch, I check everything. I know there's MaxMind and other software to prevent fraud, but they're not infallible. And none, that I know of, guarantee orders. I would love a company that would run fraud prevention and guarantee their system, but I haven't seen one yet. If anyone knows of one, please let me know!