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Here are mine!
Trigger a warning if
(1)The shipping address is different to the credit card address
(2)Is it an international order
(3)International shipping address
(4)If the order is from X country (Have a table to which it references against a country with a severity
1 = relatively safe
2 = cautious Need to verify name and address before shipping
3 Verify user by phone and also ensure money is in the account using other methods
apart from cheque and CC)
4= Nigeria (Just do not ship!)
What other triggers can people think of?
Obviously the more triggers that an order produces the more careful one would have to be
1)large dollar amount
2)want express shipping
3)Purchase of certain high risk, easily re-saleable products
4)ship to certain high risk cities (in U.S.): Miami
5)ship to address of freight forwarders (get a file of them)
By the way, I certainly wouldn't reject all orders with different ship and bill addresses. My main cc is billed to my business but stuff is often shipped to my home. (or visa versa in some cases)
Multiple orders from the same IP with different information should raise a flag. Multiple orders with the same ship to but different bill-to and/or credit cards should raise a flag.
Watch for order "velocity" also -- repeated attempts to place an order from a given IP address within "x" minutes should raise a flag.
Orders placed from an IP address not in the same country as the bill-to or ship-to should raise a flag (you'll need the ability to determine country from IP address - search the web and you'll find ways to do that).
Note that with IP address flagging, you'll have problems with AOL customers - every page hit from AOL can come from a different address even though it's the same customer.
An e-mail address with a free provider (yahoo, msn, etc.) should raise a flag.
Require a phone number with all orders. An order where the area code doesn't match the same area as the bill-to should raise a flag.
Require CVV for all orders. That eliminates a lot of fraud right there.
Require AVS match for all orders. Easier to fake than CVV but still will filter a good deal of fraud.
Dont' know if this can be done automatically though as I call the issuing bank on every order over $250 and, so far (7 years), haven't shipped a fraudulent order.
Goes without saying, just dump all those Nigerian orders that just love your stuff and can't "wait" to get it ASAP.
two triggers I use is to search the previous orders to see if email address was used before but with a different name. I also search previous orders to see if cc number was used before with a different name.
For Discover cards, we call their authorization and verification line.
The billing address fails, decline the order. Cheaper than a chargeback.
If it is overseas - decline it, no way to go after people just doing a chargeback because.
Those are the basic rules. The only time I ever got burnt was for a $1300 item. Everything checked out. I even called the credit card company and verified it wasn't a hot card. Shipped the item and then got a chargeback months later. It turns out a fella from FL stole an old timers credit card statement from TN and had everything changed including the billing. From there he went nuts.
Other than that we have been extremely lucky with chargebacks. And on the chargebacks we do get that are from legit people and we have indeed shipped the items, we send them right to collections with chargeback fees. I got so sick of taking the chargebacks and losing the fees, collections was the only way to go.
I've never really had a fraud problem through that route. A lot has to do with the nature of your products.
If it isn't something that has a ready resale market, you should see less fraud. I would say that jewelry, electronics and that sort of easily fencable item are a whole different animal.