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  1. #1
    Member blizz93cw's Avatar
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    I have a question involving invalid credit card reversals for any merchants who can answer. Before naming this particular CJ merchant I was curious how long typically before you can tell if a person placed an order using an invalid credit card. I had a 48.00 commission reversed this morning for invalid cc less than 8 hours after the transaction was recorded. This sale was for 975.00 and it seems like the merchant should have taken the time to contact this person to see if they could supply a different credit card. It seems unlikely that this happened so quickly.

    Do merchants take the time to contact customers with invalid credit cards? or do you typically just toss the order in the trash. This particular merchant reverses too many transactions already, they alternate the reasons. I've always lived with it but this would have been the largest commission they had ever paid me.

    Thanks in advance!

  2. #2
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    As a former e-commerce manager, I can say that calling every bogus credit card order is not feasible. I ran a small operation (about $1 million) in annual sales. We got a minimum of $10,000 per month in bogus orders. After a while, you can spot them. The email will be something like ilovechocolate@deathbychocolate.com. Most of these orders originate in Eastern Europe. I called the ones with a US address, but I can't remember ever calling one that was an honest mistake or something of the sort.
    There are people who spend their entire day ordering from merchants, using bad cards. Most of the cards are approved, but a wise merchant will be able to spot bad credit card transactions at a glance.
    As a full-time affiliate marketer, this drives me crazy as well with the reversals, but I must say that I understand the merchant's side of the story.
    I hope that helped. I got hit with a $20 chargeback this morning myself, due to a bad CC.
    Scott


  3. #3
    Member blizz93cw's Avatar
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    Thanks, that does help alleviate some of the agony!

  4. #4
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    Hi Blizz93,

    I would say a merchant should consider all options such as calling a customer to request another card number, other payment options if applicable, Etc. before slapping a NO GO to an affiliate. In response to the most important question here, I'd say it should be a good 12-16 hrs. to explore the above stated options.

    I hope this helps!

    Kevin- GO WIRELESS

  5. #5
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    It may also have been a Nigerian order - I'd cancel one of those in about 2 seconds flat.

    I've removed Nigeria from the country list in the store but I still get them emailing me saying 'I'm in the USA but want to send my wife in Nigeria some t-shirts' and then they ask for 20 of this, 20 of that, all in the same size LMAO

    Gives me a good laugh

  6. #6
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    There can be other information that shows the order is fraud. Often the scammers will try multiple cards/names, sometimes even from separate ips, so the one order will not be obvious on its own, but when reviewed, the issue would become obvious so the decision can be made in a timely manner, i imagine many a fraud is caught when the order is processed internally with shipping etc.

    Depending how the merchant interacts with their processor, they may also try and do this in a timely manner so they can just void the order before it is processed and they have to credit it instead.

    And it really depends on the market for fraud issues, we average almost 10% of our orders are fraudulent, and i can tell one that gets pass the processors screening immediately most times. A few times it will take longer because I might call - which causes the other issue (not for me since we don't have an affiliate program), if you wait to call and you find out that card is invalid - affiliates would get mad that the card was called invalid 24 hours later.

    Fraud is extremely prevalent in some industries and affiliates have to understand this, because it sucks for everyone.

    Chet

  7. #7
    The slot machine that IS paid! Billy Kay's Avatar
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    My sites all use AVS checks - it's 35 cents more per transaction - but in over 10 years online, I've never gotten a chargeback for this reason.

    If a customer lives at 123 main st, but enters 124 main st, they'll keep getting a "Transaction Denied Doesn't Match What's on File with Issueng Bank" responses, 'till they finally open their eyes and look again at what they entered.

    we also use "Transaction Denied - Possible Duplicate Transaction" for those people who insist on clicking the order button 5 times! (These also cost us about 35 cents each)

    But it saves headaches later!!!

  8. #8
    Member blizz93cw's Avatar
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    Thanks everyone for shedding some light on the subject!

    Three years of affiliate marketing and it's still hard to look at reversals in my reports.

  9. #9
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    AVS works sometimes, as does CVV, but you can buy card numbers on the web with valid billing addresses and CVV codes.
    SamyT, you are right. In a business where my average ticket was $85, all of the Lagos or Nigeria orders I got were at least $500, often $5000 or more, always to be shipped overnight.

    I have a friend who opened a hobby shop and started selling on Ebay. I told him to use AVS, etc. and he said I was just being paranoid. He shipped $900 worth of stuff to Lagos, bragged about the big sale he made, then cried when he got the reversal back from his merchant company. There are newbie web merchants out there who will ship this stuff. I guess it's jsut a numbers game with these scammers. Try X number and Y number will ship.


  10. #10
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    We had a french group/person who would not only have the correct billing information, but actually used proxies/zombies in the general location of the address to place the order from. So the addres was right, the ip was close... it was a pain.

    Chet

  11. #11
    Devil's Reject Electropulse's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by SamyT:
    It may also have been a Nigerian order - I'd cancel one of those in about 2 seconds flat.

    I've removed Nigeria from the country list in the store but I still get them emailing me saying 'I'm in the USA but want to send my wife in Nigeria some t-shirts' and then they ask for 20 of this, 20 of that, all in the same size LMAO

    Gives me a good laugh <HR></BLOCKQUOTE>

    I also sell t-shirts, for a while I was getting a bunch of lagos, jakarta, java orders, I would void them all.

    however, since removing shady countries from the drop down list...these idiots now choose Australia or france with a nigierian address.

  12. #12
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    Remove their country from the drop down, and they type it in the street address field. LOL
    I guess it's a numbers game with them. Run 100 orders through and they might find one newbie (or idiot) merchant that will ship.
    My experience was that most of the time the card was actually good.
    Scott


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