dickbaker - 3:10 pm on Jun 10, 2010 (gmt 0)
A very effective method for checking orders. I don't know though how to do this. I called the bank of America yesterday to verify an order. The first time i've tried this method. Spent 40 minutes on the phone, transferred 5 times only to be told that the cardholder is the only one that can they can give information to. Very frustrating.
Visa and Mastercard have a number you call to get the phone number of the issuing bank. American Express and Discover let you verify name, address and phone number information on their automated systems.
Generally, customer service at the issuing banks will do the verification. Every so often it has to go to the fraud department. In about 1% of my verifications I'll come across a bank that won't do the verification unless the customer is on the line, in which case I'll call the customer and ask to conference in.
Months ago someone suggested checking IP's as well. I'll do that if an order is somehow unusual, but more often than not the IP points to an ISP that's on the east coast.
There's a few red flags that will cause me to do more than verify name and address. One, of course, is a shipping address that's different from the billing address. That's usually easy to clear up.
Others are a request by the customer to not require signature verification, phone numbers that are from markedly different areas than the billing address, any order over $500, orders where the recipient name is different than the card holder name, and a few others.
I got burned out of $1400 last January, which was the first time in almost a year I'd gotten burned. I just got lax about security. For my little store, $1400 is nearly two weeks of profits.