How long does it take to detect fradulent payments?

Is 45 days built in before being availalbe for payout enough?

[Voltec]

My partners and I work in a field where attempted fraud would be expected from time to time. We are going to put a 45 day time delay between when people pay and the time it is available for payout... We figure this would allow us to spot (or be notified) of attempted fraudulent credit card transactions. (We will be allowing Pay Pal, Credit Cards and maybe E-gold).

Any thoughts on whether this is enough time to be notified if someone or a group attempts fraudulent payments? We will also be looking for IP clusters in the scripts of course.

Matt

[AsleepATheWheel]

Well you would of thought that 45 days would be plenty of time, but unfortunatly a chargeback can be made up to 6 months after a transaction has taken place, and on our sites this seems to be the main way we get hit with fraud. Unless you have a signature for the transaction (almost impossible with customer not present) you are fighting a losing battle.

Cheers,

Paul

[bekyed]

Paul is right, here is a list of pointers below to avoid fraudulent chargebacks

1. High Risk Countries

Be aware of the delivery address - countries like Africa, Romania, Nigeria, Indonesia, Malaysia and Slovenia are notorious for fraud. If in doubt do not ship!

2. Multiple/Failed Transactions

Check for multiple and failed transactions from the same customer in the transaction viewer - if you receive multiple transactions with frequent failures then this could signal a fraudulent attempt. (SECPay provide a "blocking" system to prevent fraudsters using a merchants site to test card numbers from number generators which helps considerably but is not perfect and never can be).

3. AVS/CV2

AVS (address and post code verification) and CVV2 (last 3 digit's on the reverse of the card) for ALL acquiring banks, your merchant bank can arrange this

4. Anonymous Email Accounts

Be suspicious of customers using free email accounts -traceability is more difficult.

5. Know Your Transaction Patterns

Know your normal transaction patterns - be suspicious of large transactions from an unusual source or that do not make sense, ie goods that do not go together.

Remember if it looks and smells bad, it probably is.

Bek.