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Preventing fraud orders when you receive an approved response?

     
4:55 pm on Oct 27, 2009 (gmt 0)

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Hi,

I've been having a hard time preventing fraudulent orders when I receive an approved response from my merchant provider.

I currently use PCCharge with one of the "First Data" processing companies; so when I receive an approved response the order continues through the processing steps in my order management software.

I then receive a phone call stating someone sees a charge on their credit card that they did not make, or I get a letter in the mail saying a chargeback has been issued.

I never win any of these chargebacks; so I end up losing the product and money that was removed for the order on the person's credit card.

I hate this, just because someone elses credit card infomation was stolen and used to purchase a product on my website; in the end I have to pay for these people not protecting their credit card infomation better!

Is there anything I can do to prevent or stop fraudulent orders when I receive an approved response from my processing company?

Thank you,

olimits7

4:35 pm on Oct 30, 2009 (gmt 0)

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proxy detection with maxmind - wiped out our fraud problems. period.
4:36 pm on Oct 30, 2009 (gmt 0)

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My idea is to have one of those portable card readers in restaurants that they usually use at baseball games. Then they would just swipe right in front of you so your card never leaves your possession.

Which, I believe, is how TJ Maxx had thousands of credit card numbers stolen. How many restaurants have their own IT department?

So back to my original suggestions- get the police involved.

Are you seriously serious?

Absolutely. The thieves are going to continue doing what they do as long as they can. One report from an out of state merchant and the police might not do much (or anything). Dozens of reports about the same person, they're more likely to do something. If an "honest" customer is gaming the system with you, he/she is probably doing it with others. So if you don't do anything to help put an end to it, it's just going to continue.

There's an old saying- "If you're not part of the solution, you're part of the problem."

5:41 pm on Oct 30, 2009 (gmt 0)

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If an "honest" customer is gaming the system with you, he/she is probably doing it with others. So if you don't do anything to help put an end to it, it's just going to continue.

There's an old saying- "If you're not part of the solution, you're part of the problem."

I'll grant you the full point on this. However, their are only 24 hours in a day, and I work more of them than I should. I'm not shy from standing up to a fight. More than once I've spent $1,000 in time/money on the principal of a pitiful $10 or $20. Got to pick one's fights though, and on this issue we just pass on the loss.

If we had fraud issues with professional thieves, my attitude would probably shift pretty quick. Potential merchant account issues would be a 'red alert' situation. When we get ripped off by 'the guy next door' it is easier to not become jaded in attitude towards all customers by just blowing off the occasional cheat.

6:31 pm on Oct 30, 2009 (gmt 0)

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My idea is to have one of those portable card readers in restaurants that they usually use at baseball games. Then they would just swipe right in front of you so your card never leaves your possession.

Which, I believe, is how TJ Maxx had thousands of credit card numbers stolen. How many restaurants have their own IT department?

Wirelessly, doesn't seem to be the best option but maybe portable card readers that save the information encrypted and then when the waiter/waitress goes back to the register they plug it into the register which uses the same encryption as the portable device and the charge is completed and fraudulent free - hopefully! :-)

This way the card never leaves your sight, and the only way to get the transaction completed is by plugging it in to a register that uses the same encryption algorithm...

olimits7

7:47 pm on Oct 30, 2009 (gmt 0)

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I have been in restaurants that have portable card readers. They are out there and becoming more popular.
1:26 am on Oct 31, 2009 (gmt 0)

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Those portable units just save the information with encryption. But what stops someone from stealing the unit? That was rhetorical.
1:58 am on Oct 31, 2009 (gmt 0)

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When will VISA and Mastercard ever switch to chip and pin in the US? Magnetic stripes are sooooo 70s.

If you ever see a waiter take your card away from your table in France there is something fishy! Portable chip & pin card readers have been the norm for so long I don't even remember when they didn't have those.

Luckily they started using the same in other countries like the UK, but they still need to make the jump in the US...

Jacques.

12:21 am on Nov 1, 2009 (gmt 0)

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What are you talking about? Most have those in addition to the magnetic strip.
12:34 am on Nov 1, 2009 (gmt 0)

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Yes, but in POS ("card present") situations, PIN input is mandatory, so in restaurants and other such places, wireless handheld terminals have been the norm for a very very long time (over 10 years), so you'll never see anyone take your card anywhere where they can swipe it and/or make a note of the details, they always use it right in front of you.
8:14 pm on Nov 2, 2009 (gmt 0)

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When I perform a manual AVS check by calling Visa/MC/etc...when I call do I provide them with the address I have on file and they will tell me if it matches or not?

Thank you,

olimits7

8:37 pm on Nov 2, 2009 (gmt 0)

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Yes, but that only means that there is a match. A newly stolen card, or newly acquired data to a card where the owner doesn't know that security has been breached will get the okay. You still lose in the end.

What is the ticket average? If not high can you afford to chase after manual verifications - which may also push up the transaction fees? (Depends upon your arrangement.) Manual verifications don't cost us extra, but we don't use them either.

Bad cards get blocked out almost instantly. Unknown bad cards will go through until - surprise!

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