How to avoid paypal fraud for ecommerce site?

Discussion in 'Payment Processing' started by tigaruk, Jun 19, 2014.

  1. #1
    Im making a new site selling t-shirts and prints and want to know how to avoid paypal fraud.

    I'll be using woocommerce in wordpress with paypal, but how do i avoid those dodgy orders that happen from time to time?
     
    tigaruk, Jun 19, 2014 IP
  2. ironcladservers

    ironcladservers Well-Known Member

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    #2
    ironcladservers, Jun 19, 2014 IP
  3. tigaruk

    tigaruk Peon

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    #3
    Thanks, that looks a bit overkill / annoying to the customer though. Whilst i want to make sure i don't send out items and then find out from paypal it was a hacked account, i don't want to scare off customers by doing something which isn't that common place, especially as the value of each product will be quite low, around $20. Im going to limit where i ship to, and only ship to billing address at first but still feel theres more advice and tips to be more prepared.
     
    tigaruk, Jun 19, 2014 IP
  4. ironcladservers

    ironcladservers Well-Known Member

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    #4
    I understand what you mean, but if it makes you feel any better, we process MaxMind on every single one of our orders, which can be as low as $1.99, and where you'll be sending actual physical items (compared to an account that can be removed), I would consider it even more important to do this to avoid loss of funds (every little bit counts). Also, if you get a lot of chargebacks or disputes there's a chance of your PayPal account going in limited status, possibly affecting your money flow/operations.

    I would at the very least indicate on the site that you will only ship to billing address, but this can still cause issues :)
     
    ironcladservers, Jun 19, 2014 IP
  5. tigaruk

    tigaruk Peon

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    #5
    Thanks, its defo something to still think about.

    Im also wondering what issues i may face, i only know of issues from being a customer/ebay user in the past, but if i accept payments through paypal is there anything else they do to make sure its legit, or time frames of things i should be aware of?
     
    tigaruk, Jun 19, 2014 IP
  6. ndanev

    ndanev Peon

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    #6
    Hello
    I am anti-fraud consultant. You can check my web page which carries the same name as my profile here.
    First do NOT spend money on anti-fraud related services for merchants. What they will do is simply check where the buyer is from (IPwhois) + where the address of the paypal is (say CA, US) and calculate the distance in miles from the IP whois registration of the ISP towards the PAYPAL.
    What I as consultant advice you is simple, first check for mismatches in the names/ emails used and addresses. 2nd check the IP of the buyer in spam-blacklists (if his ip is blacklisted for spam it's most likely a proxy which he uses to cover his real IP, so he looks as the genuine paypal owner).
    Also you can check things such as his DNS resolve, you can use flash cookies, Java (although very heavy) or ask for ID scan of the paypal owner whenever you feel like there is some risk of him being a fraudster.
    If you need free consulting fell free to write me a message.
    Hope that helps
     
    ndanev, Jun 23, 2014 IP
  7. chrislim2888

    chrislim2888 Active Member

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    #7
    If you are concern about the cost, you may check this http://www.fraudlabspro.com that provide you 500 free fraud validation for each month. However, there are no ready plugin in woocommerce and you would have to integrate it yourself into woocommerce.
     
    chrislim2888, Jun 25, 2014 IP