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  1. #1
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    As a merchant, I am simply blown away by the amount of credit card fraud online.

    Part of the problem is there is no prosecution on behalf of the CC companies when these people try to order stuff with other people's credit cards.

    "BUyers" provide fake info, with of course the exception of their mail addy (they still want their free stuff). But they KNOW they will not be prosecuted, so they act with impunity...the asspods.

    You know I hate reversing sales to affiliates, it's lost revenue to them and me. I wish the CC companies would fry these little dirt bags.

    Sorry for the rant, just had to kill a couple larger orders.

  2. #2
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    Zombie - I couldn't agree with you more! The credit card companies DON'T CARE, because they get paid no matter what. The local police don't care because the perp is usually not local, and the police in the perp's area don't ccare because the complaintent is not in their jurisdiction! We've had documented proof of fraudulent orders along with the list of card used, and their real name and place of work, and still no one will do anything about it. And this isn't even from Nigeria...this guy was in Florida! Gave us like 20 different credit cards over 4 or 5 different phone calls.

    Let me vent with you, please !.... AAARRRGGGHHH

  3. #3
    Analytics Dude Kevin's Avatar
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    Has anyone sat down to figure out what percentage of orders are fraud? Any of the big research houses I mean?
    Kevin Webster
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  4. #4
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    LOL asspods
    Hi, I'm a signature.

  5. #5
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    We used to have a bad problem with fraudulent shipments going to NYC. We have reduced this to almost nothing. A couple of things merchants can do to reduce this:

    1) Require the 3 or 4 digit Verification number from the credit card for the first transaction. This is not part of the regular cc#. If the thief only has the cc# and not the actual card in hand (which is often the case)then they are unable to use it.

    2) Always ship to ONLY the credit card billing address for the first order. For merchants that don't focus on gift purchases, this is the single best preventative measure.

    3) Use UPS ID/signature verification service for first time deliveries. This costs $3 per delivery and can be billed to the customer if you choose. It is not enforced 100% of the time by UPS but just making it clear on your website that first time deliveries will require ID and signature does have a deterrent effect.

  6. #6
    ABW Ambassador Andy's Avatar
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    Frank has some really good suggestions.

    I've been the victim of CC theft in the past, and it turned out to be someone at the CC company itself doing the scam. They even had the additional verification number.

    It was one of the big banks that issued the card. They didn't act like they were too concerned about it, they just closed that account and opened a new one and credited me back for the fraudulent charges.

    This makes all of us pay more for credit, in the form of higher interest rates and fees, since the cost of issuing a new card, mailing it, customer service time, long distance, etc., has to be figured into the costs of doing business. And we know they pass it along to the customer.

    I do wish merchants would be more strict with how CC transactions are handled. Legit customers will rarely be upset if they know it's for their own protection.

    Andy

  7. #7
    ABW Ambassador mailman's Avatar
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    Credit fraud is out of control. Having been in the retail industry for over 40 years here's my 2cents. Why some bank hasn't brought out a card just for online purchases is beyond me. This card could me set for whatever the customer wants it's limit. If he goes over he simply transfers funds from his credit card to cover the purchases. I know there is a bank here in Canada that is starting a prgram where you can pay via check or have it transfered to a merchants account,similar to debit cards.

  8. #8
    ABW Adviser Panel Dynamoo's Avatar
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    Here's a typical scenario.. I get an email typically from Nigeria or Indonesia offering to buy goods from my site (it's an *affiliate* site - I don't actually sell 'em). Usually a clear case of fraud.

    Now and again I play along.. so I ask them for their address and CC details. The only problem is that unless they give me the name of the issuing bank, I can only report to the card network (e.g. Mastercard) which is a pretty unfulfilling experience.

    Surely it should be easier to submit this information? Why do banks make it so hard? It's just like trying to report a phishing email - they make it *so* difficult as to be impossible.

    Banks seem to be in denial about the whole thing, and yet there are an army of people out here who would gladly help if there was a way to do it.

    Innovative advertising with Slimeware Corporation and Telephore. Mail-order fuel with Petrol Direct.

  9. #9
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Why some bank hasn't brought out a card just for online purchases is beyond me. This card could me set for whatever the customer wants it's limit. If he goes over he simply transfers funds from his credit card to cover the purchases. <HR></BLOCKQUOTE>
    Can't you do that w/ PayPal & just use the PayPal credit card? Of course w/ PayPal, you have to give all that other info & they've gotten a bad rep... and I don't know what countries they're limited to...
    Hi, I'm a signature.

  10. #10
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    These people are so brazen they include their shipping address knowing full well the CC company nor the merchant will prosecute them.

  11. #11
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    Celicaphile, some of the more ambitious fraudsters actually use the stolen cc's to signup for paypal, and then operate from there making it even harder to track down.

    It does get very depressing. Everyone thinks Citibank and others are so great for refunding the money to people's stolen cc's - but they aren't. The merchants are. And citibank and the like profit - all CCs are, are collection of banks operating together. And in the end, the merchant gets screwed everytime.

    Sorry to hear it nakedzombie, i have been there on those frustrating days when no one cares, all you want to do is give people decent service, yet you are the target and getting screwed.

    Chet

  12. #12
    Devil's Reject Electropulse's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by mailman:
    Credit fraud is out of control. Having been in the retail industry for over 40 years here's my 2cents. Why some bank hasn't brought out a card just for online purchases is beyond me. This card could me set for whatever the customer wants it's limit. If he goes over he simply transfers funds from his credit card to cover the purchases. I know there is a bank here in Canada that is starting a prgram where you can pay via check or have it transfered to a merchants account,similar to debit cards. <HR></BLOCKQUOTE>

    I think there is a company who are introducing a temporary credit card number which can be used just once and for online purchasing only, I forget who it was but I don't know, wouldn't this be worst?

  13. #13
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    If a temp, or one-time use card is developed, once it's stolen, it's the same problem, isn't it?

    Merchants, if they are lucky enough to catch it in time and not ship items, are still dinged 2.x% on the purchase, and 2.x% on the refund. For the love of almonds, I wanna be a merchant bank and give the card numbers away to hoodlums and collect 4.x% all damned day long.

    card holder is protected
    CC company and mechant bank make their 4.x%
    merchant gets the shaft

  14. #14
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    Good fraud article for merchants:

    http://retailindustry.about.com/libr..._mfs061702.htm

  15. #15
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    PMing u
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