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  1. #1
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    Credit Card Fraud?
    Hi all, I am an affiliate manager with a group that offers web tools for small businesses. We just started selling our subscription services through CPA networks and affiliate networks, and we have run into issue with invalid credit card numbers. This is a major problem for us because we offer a free trial period, and pay commission as soon as someone signs up (without going into specifics, the free trial is the standard for the space we are in). In short, we are currently in a position where we are paying commission, and getting invalid credit card information (we cannot charge the cards). Does anyone have any advice/experience with this sort of thing? We have cut off the affiliates we know are responsible for it, but, that only fixes things for the moment; we obviously want to prevent this from happening in the future...

  2. #2
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    Isn't there a way to just validate a credit card without charging it?

    Each credit card provider has a particular algorithm for the number, and in addition there might be 3rd party services that provide services to just validate credit cards - check with them.

  3. #3
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    Thank you for the response. Yes, we do use a service to validate, but I do not want to mention the name as I do not want "trash" anyone. They are a major provider of this service, and have a good reputation in the industry. These credit card numbers somehow made it through them.

  4. #4
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by MikeInc21
    Thank you for the response. Yes, we do use a service to validate, but I do not want to mention the name as I do not want "trash" anyone. They are a major provider of this service, and have a good reputation in the industry. These credit card numbers somehow made it through them.
    Does this "major provider" not give some sort of a guarantee with their service? If they fail to do what they are paid to do, that is, protect you by verifying credit cards, then they should pay for your losses.

    Also, couldn't you change your offer to charge $1 and run that through the card basically just to validate it?
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  5. #5
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    Quote Originally Posted by MikeInc21
    Thank you for the response. Yes, we do use a service to validate, but I do not want to mention the name as I do not want "trash" anyone. They are a major provider of this service, and have a good reputation in the industry. These credit card numbers somehow made it through them.
    The answer is very simple.

    Charge the card 2 USD at the point of sale.This will get the bogus cards down to a minimum.

    You "FREE TRIAL" must be a free trial plus a 2 usd transaction fee or account set up fee or "Plus Handling".

    If you don't, your gonna keep gettin ganked.

    Steve
    DreamLinux.net | Registered Linux User 453976 | PM me to view our sites. It's a Google thing.

  6. #6
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Quote Originally Posted by MikeInc21
    ... pay commission as soon as someone signs up ...
    Quote Originally Posted by MikeInc21
    In short, we are currently in a position where we are paying commission
    Commissions paid immediately(?) Explain? Your not instantly crediting a paypal account (or similar) are you? You have to have a lag to verify leads before you pay on them!

    Quote Originally Posted by MikeInc21
    and getting invalid credit card information (we cannot charge the cards).
    Change the processor, plain and simple. That is unacceptable.

    Edited to Add: Moved to Credit card sub forum from Unethical Affiliates Forum.
    Last edited by Haiko de Poel, Jr.; July 31st, 2008 at 09:26 PM.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  7. #7
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    Quote Originally Posted by Haiko de Poel, Jr.
    Switch Proceesors. That's unacceptable

    Haiko is correct. It's also unsustainable.

    Steve
    DreamLinux.net | Registered Linux User 453976 | PM me to view our sites. It's a Google thing.

  8. #8
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    Thank you for the responses, and my apologies for posting in the wrong forum. In my state of distress yesterday, I misrepresented the commission situation. What I meant is that we pay commission irrelevant of whether the customer stays past the 30 day free trial or not. This is a standard practice in the space we are in. Steve, thank you for the suggestion of charging $2 upfront. That is something we discussed internally, and are considering doing in the future. Also, in regards to the commissions, the networks we work with are not going to make us pay as they are not valid sales. Our concern is for the future as we continue to grow.

  9. #9
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    $2.00 upfront - Agreed.

    Also - with your tracking software are you recording the order ID to the publisher? (Do your networks offer this to you?)

  10. #10
    Affiliate Manager ReneeM's Avatar
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    You could switch to a processor that authorizes the card. In my industry we can not charge a card till the product ships so what I do is authorize the card at the time of the order. This not only verifies that the card is real but also that the funds are available. The authorization is good for 30 days, so that gives us plenty of time to get the product out the door and I can pay affiliates commissions as soon as the card is authorized with no worries. In your case you could authorize the card for the free trail period and then just capture the funds when the trail period is over.

  11. #11
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    A long time in jail.
    they dont play with this kinda stuff,
    especially adults

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