Home > General
Help > Dealing with fraudulent orders
Fraudulent orders
Most payment processing companies wil automatically check
orders for obvious signs of fraud and / or allow you to set the
conditions yourself through their admin area. Checks are often
made on AVS, CVV but may
include transaction amount, known bad IP addresses or ranges as
well as rapid multiple orders amongst
others.
The important consideration is not to rely 100% on your payment
proceesor to pick up on fraudulent orders and that is why we recommend
manually reviewing each and every order. The steps below are a
guide to checking for fraudulent orders.
- Closely check all orders
- Check the IP address of the
order. Use a site such as Hexillion to
match the IP address of the computer with the address of the
customer.
- Check the address and telephone number of the customer. Use
a service such as White Pages or Infobel, you can also often
search on a person's name on Google to find out details about
the buyer.
- Always double check orders where the customer uses a free email
account such as Hotmail, Yahoo, gmail etc.
- Always double check orders where the shipping address is a
PO Box.
- Always triple check orders where the shipping address
is different to the billing address.
- If in doubt telephone / email the buyer to check their credentials.
- If you are still in doubt, cancel the order and don't ship.
Chargebacks will cost
you more and may compromise your merchant account.
- Avoid accepting personal checks - they can easily be stopped.
Glossary
of terms
AVS (Address Verification Service)
Check on the card holder's billing address. This will match the
address given on checkout with the records held by the bank for
the address of the card holder
CVV (Cardholder Verification Value)
A check on the three digit number on the back of a credit card.
IP address
The address of the the computer from where the order originates,
this will be in the form of numbers like 123.123.123.123
Chargeback
When a customer contacts the credit card company disputing the
purchase. This may be due to fraud or displeasure with the product
received. Chargebacks will incur an extra fee, depending on your
payment processing company, and may result in the closure of
your account.
|
