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Reporting fraud to the issuing bank
why is it so difficult?

 4:15 pm on Apr 30, 2009 (gmt 0)

When I receive suspicious order, I want to report it or verify it. Unfortunately banks are not very helpful. I called one today and asked them just to call cc owner and verify purchase, because phone number I had was wrong and email address was incorrect either. They told me to fax them all information about the purchase and my company and than they may call the owner to verify it. Sorry, I don't have time for it. I have enough red flags to cancel this order. I am sure that this cc has been compromised and they will try to use it with other vendors, but obviously bank doesn't really care.



 4:18 pm on Apr 30, 2009 (gmt 0)

Nope- they don't. Why should they? The costs of fraud are mostly borne by the merchants, not the banks.


 4:38 pm on Apr 30, 2009 (gmt 0)

I've had similar situations where the card was stolen and I had a shipping address that I thought might be the address of the thieves. I called the issuing bank for the credit card, and they practically yawned.

I called the legitimate card owner and gave her the information, which she said she would give to the police. She was very grateful.


 7:36 pm on Apr 30, 2009 (gmt 0)

I had one called the bank they said would call the owner. Week later called tha bank again they said they would call the owner and let me know.

Mind ya all the info checked out except the phone number but it was a ship to another address.. I smelled a rat.

Called the bank for the 3rd time said same thing I figured the heck with these jerks. Did some searching called the owner myself bank never called him I told him the story. He was as well grateful and planned on changing banks.

Maybe if more of us let the owners know just how little their bank care about them and turn the customers against the banks we as merchants might get a little more respect.

As it is now banks make big bucks off our backs off chargebacks so why should they want to help stop a source of income unless you turn the customer against the bank.

I asked him to please let the bank know why he was leaving.... Sure felt good. :)


 8:58 pm on Apr 30, 2009 (gmt 0)

but obviously bank doesn't really care

No, they don't. We have this thread about once a year. There was a time when we could provide them with a few stolen credit card numbers a day. So I would call the bank, sit on hold, talk to somebody, get transfered to somebody else, put on hold, listen to music while trying to stay awake, talk to another person, they tell me somebody will call me back, hang up. Never hear from the bank again.

So. ... for the last 7 years we never even bother. I have about 4 hours invested in that pointless exercise that we will never get back.

You would think they would set up an 800 number for merchants as a tip line. But no, they are too busy to care.

Every once and a while we will get a fraud attempt and the person who owns the card will have a unique name and from a smaller town. We will try and find their real home phone number and I will call them and tell that that their card appears to be compromised. They are usually very thankful.

Luckily, we are on a really good streak and the fraudsters are ignoring us. It could be because they have not been able to rip us off for a very long time now.


 9:37 pm on Apr 30, 2009 (gmt 0)

I had a case where I lost money from my own credit card.

I had bought a few things on line all OK. Then a few months later I checked my tansaction list and there were several withdrawals for about $39.00 each to several companies with names such as Transaction Assist, Payment Sevices etc.

I wrote to my bank asking how could this happen, they just replied after a month that they had reversed the transactions, (but not the oldest two).

That was OK in that I got most of my money back.

But I wanted to know what were they gonna do to those scumbags who had got my credit card details and set up merchant accounts to rip me and others off.

Once again the bank did not seem to car about that.


 5:02 pm on May 7, 2009 (gmt 0)

We've noticed many fraud orders with Discover cards in 2008. When we reported multiple attempted fraud orders we reached out to Discover security department to let them know. The result Discover contacted us and stated they were going to shut down our merchant account. "Thanks for protecting our customers but we're going to shut you down". We had to jump through hoops and now we're all sqaured away. We have seen many fraudulent orders going to Jamaica New York. When we contact customers on sketchy orders they are very grateful.

Does anyone have established guidelines for which orders you let go through and which ones you audit?


 5:16 pm on May 7, 2009 (gmt 0)

Wow, I would have dropped Discover like a bad habit.

Oh Ya, I did, several years ago because of a chargeback that I had a signature for but in their (Discover's) wisdom the order did not collect the 3 digit security code so it was invalid.


 10:04 pm on May 7, 2009 (gmt 0)

When in doubt, refund the credit card and then you will not have to worry about a chargeback. Why waste the time when you know it is a fraudulent order to begin with?


 8:16 pm on May 8, 2009 (gmt 0)

"Does anyone have established guidelines for which orders you let go through and which ones you audit?"

1. Billing address different than shipping address.
2.Very often next day shipping, no matter how expensive it is and not taking advantage of any discounts that may be available with this purchase (coupon code etc.).
3. Phone number area code not consistent with billing or shipping address.
4. IP address not consistent with billing/shipping address.
5. Orders placed late at night also weekends.
6. Capital letters.
7. Demanding "no signature" on delivery.
8. Email address or part of it not consistent with name or lacation of customer anyhow, and very often registered with free email service.
9. Phone number out of service, disconnected, no answer etc.
I also look for the way they found my site and previous site visited.
Very often simple phone call will do. Call and ask to verify information they gave you like addresses. People usually don't mind it.


 8:39 pm on May 8, 2009 (gmt 0)

10. All lowercase letters.


 10:47 pm on May 8, 2009 (gmt 0)

Not really, at least in my case. I'd say 85% of my orders are all lower case. about 9.5% would be correct wit names starting with capital letter. And than 0.5% are all capital letters, and half of it is fraud. Maybe it's just my issue.


 11:03 pm on May 8, 2009 (gmt 0)

For us, the majority of fraud orders have been all lower case. We also receive a lot of all lowercase reservations that end up being valid. So it's just one of many red flags. It's certainly not an automatic rejection.


 3:16 pm on May 18, 2009 (gmt 0)

And here it is another fraudlent order, and it is all capital letters. Also one update, it doesn't have to be next day shipping but one of the guranteed shipping options, because they need to know when to go and get the package. They would often ask you to leave the package on the porch , behind the screen door, etc. They are using vacant homes or some other homes where they know owner is away. Very often vacation homes and condos are used for that especailly off season.


 11:44 pm on May 18, 2009 (gmt 0)

I called a bank today for address verification and after the address didn't verify and told the bank it was most likely fraud, all the bank cared about was who I was. Although we never charged the card, I couldn't get the bank to take the fraudstes address/phone ect
Im guessing they wanted to know who we were so they could try to add chargeback fees to our merchant account. Those fees add up quick for banks.


 7:14 am on Jun 10, 2009 (gmt 0)

Let me say it simply: Money

Fraud is PROFITABLE to the banks/credit card companies.

A card gets stolen and used ten times. The customer reports it and gets their money back.

The ten merchants that got shafted lose their merchandise, have their money taken out, AND GET PENALIZED for the bad transaction ($15, $30, or whatever your contract is).

Imagine how many millions and millions of times they get to hit merchants for the 'chargeback fees'.

The big secret: They don't want to STOP credit card fraud.


 1:43 am on Jun 13, 2009 (gmt 0)

I agree 100%

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