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  1. #1
    Newbie jaguarpolar's Avatar
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    Tips to detect credit card/Paypal fraud?
    Hello I'm new here..

    I was wondering what ways are there to detect fradulent payments via credit cards or Paypal? I currently use WorldPay to manage credit card payments and as far as I know, WorldPay will process U.S. credit card payments if the billing address tallies with the registered billing address of the credit card holder.

    However, non-U.S. customers can key in any billing address and the payment would still be processed as long as the credit card number, expiry date and 3-digit security number is correct. This worries me because I receive a lot of non-US orders!

    Also, I've received several chargebacks from Paypal because of 'unauthorized funds'. So, is there a way to prevent chargebacks through Paypal? What I do now is I write an e-mail to the customer's e-mail address registered to Paypal asking for verification but this method isn't good enough.

    Thanks for helping me out Any advice is appreciated.

  2. #2
    CPA Network Rep
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    As far as Credit Card payments, you need to go thru a company like NetBilling.com. They have a variety of fraud scrubs for their customers.

    As far as Paypal, not sure what to tell you on that front.

    I know the guys at NetBilling personally and they run a tight ship. One of the few companies I would put my stamp of approval on.

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  3. #3
    OPM Queen Kristin Kinsey's Avatar
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    Another way that is very tedious, but a company I worked with formerly did this. Their system would automatically flag and orders that had different shipping from billing that were overnight or 2nd day. It would also flag orders over a certain amount.

    One of our managers would then call and verify, and prolly 95% of the time they were fraud. They used CyberSource. Sure it's not the most automated way, but it wasn't bad. There will ALWAYS be fraud.
    KK

  4. #4
    Newbie jaguarpolar's Avatar
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    Thanks Chipmunk & Kristin!

    Kristin: Yes, that's what we do currently but I'd have to follow up with so many orders because of this problem and it could drag on for weeks because 90% of customers never answer their phones!! haha what's up that?!

    So that's why I was checking if there are any other ways..

  5. #5
    Kung Fu Master Eathan's Avatar
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    PayPal suggests you wait 7 days for funds to clear before sending any merchandise. That, and their higher fees are why we don't accept PayPal.

    As for credit cards on International orders, I'm really not sure.
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  6. #6
    Newbie jaguarpolar's Avatar
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    Eathan,

    You're talking about E-Checks. E-Checks, just like normal checks need to be cleared so it makes sense that sellers are advised to ship goods after the e-check clears (which takes about 7 days). From my experience, there are probably only 5% of customers who pay using e-checks. You get paid immediately for those who pay using their Paypal balance. Unfortunately, just like credit cards, there's always gonna be fraudulent Paypal payments...

  7. #7
    Kung Fu Master Eathan's Avatar
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    Quote Originally Posted by jaguarpolar
    Eathan,

    You're talking about E-Checks. E-Checks, just like normal checks need to be cleared so it makes sense that sellers are advised to ship goods after the e-check clears (which takes about 7 days). From my experience, there are probably only 5% of customers who pay using e-checks. You get paid immediately for those who pay using their Paypal balance. Unfortunately, just like credit cards, there's always gonna be fraudulent Paypal payments...
    Actually, I was talking about PayPal in general.

    They seem to allow a lot more latitude to customers in regards to reversing funds, etc, more so than on credit card transactions alone. Perhaps it's mostly e-checks and electronic funds transfers at fault, but we ship within 1 business day. Even 5% of customers that had the option to to reverse charges arbitrarily, after we've shipped, would be too many. Add in their higher fees and they're a tough pill to swallow.
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

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