Forum Moderators: buckworks
Overseas fraudsters are learning to use ship-to's within the U.S. for trans-shipment overseas. There are several ways they do this. 1) Diverting packages during shipment; 2) Using accomplices in the U.S.; 3) Using freight forwarders.
I haven't seen much discussed here about forwarders. Most are located in Miami, Oakland and other ports.
My guess is that 98% of Americans know nothing about forwarders and assume an order from Miami is going to someone in Miami, and not to the other side of the world.
How does an e-commerce retailer protect himself? Have you been stung? (we haven't...so far)
I do so many posts in regards to VbV and MCSC in the eCommerce section its ridiculous. I am so adamant about this I am compelled to bring it up whenever people discuss fraud, chargebacks, and international trx. The program is designed to help us (believ it or not). You can virtually accept a blatantly fraudulent trx, and as long as it passes AVS Visa will block the chargeback at the carddholders issuing bank. Your merchant bank will love you because THEY won't even be notified of the chargeback.
Visa started this based on the fact that issuing banks have never accepted the repsonsibility/liability for their cardholders, so why should we as merchant have to pay for that? And why have these banks even made money off of it, slapping on chargeback fee which we pay?
Visa is putting the merchant back into the business of doing business.
VbV and MCSC drops the hammer on these banks.
Let them(issuing banks) authorize you to accept that trx and let you ship it; because its finally their turn to pay up. :)
The thread is about fraud and therefore about chargebacks, which is what fraud is realised as.
Morocco - I use VBV sometimes as well. I can still send in a chargeback if the goods were not delivered, correct?
My understanding of chargebacks is that you really need to structure your business such that it doesn't attract or encourage people to have a reason to perform a chargeback on their credit card.
For example, the sort of people that use 2co could be (haven't determined if this is true, yet, but they are scaring me) the sort of people who like to chargeback whether from fraud or for other reasons.
Whereas I have had a great track record with PayPal, so I am thinking of removing 2co and staying completely with PayPal if things do not work out.
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[edited by: logiclamp at 11:07 pm (utc) on Feb. 26, 2004]
As has been posted by several here, 98% of fraud probably comes from 5-10 countries, starting with Nigeria and Indonesia. This isn't brain surgery.
Morocco, do you protect your family from fire simply by taking out insurance?
Now let's get back to discussing Freight Forwarding.
Thus making it very difficult for "foreign" fraudsters and freight forwards to use stolen credit cards.
Seems like the best possible tactic as far as I know, Jsinger.
(we do in-store cc processing but I don't peronally handle the transactions. I'm a bit hazy on that aspect)
Check it out:
[visa.ca...]
Seems like overkill...too much work for the customer which might inhibit sales. We don't sell Rolexes.
Ive had a nightmare of a time with paypal chargebacks but no problems with 2CO - weird.
Your having exactly the reverse.
To clear up a common misconception with us about VbV. 90% of the authentication process happens on the back end. VISA gives blanket protection on 100% of all cards for "attempted authentications," and "actual authentications"
attempted authentication: centinel takes the card number and relates it to the VISA directory and the issuing bank and sees that the cardholder has not created a pin number for their card for the VbV program. The digital signature is returned to the merchant with the trx blocking fraudulent chargebacks and the consumer checks our of the webstore the exact same way he would without the program, except you would be exempt from getting a fraudulent chargeback.
actual authentication: cardholder has created a pin number with their bank and when they check out they are expeting to see the VbV screen. They enter the number as the last part of checkout and go on their way.
Actual and attempted authentications are all covered so you will be protected on 100% of all your Visas.
The only people who will enter a password will have already created one and will be expecting to see that screen upon checkout. This demographic represents around 10% of all Visa cardholders.
MC only gives protection on enrolled cards but they will adapt to the Visa policy by the end of the year.
Sorry for the long posts.
I'm not trying to sell you something, I'm trying to help. If you get one chargeback per year or lose $300 in merchnadise or time in and around chargebacks this software will pay for itself.
