Clearly, card companies are going to have to adjust their policies for failed transactions. It's not like it costs real money to decline a fraud attempt; stop punishing merchants.
Candy Japan hit with credit card fraud
11–20 of 208 posts
Re: Candy Japan hit with credit card fraud
#12Second article in one day mentioning how bad credit card fraud can be to handle, especially for smaller sites. I wonder if there might be an opportunity there? Or if the solutions have to be so custom that it'd be impossible to work out.
There is a huge opportunity there for companies like Stripe to buy eg MaxMind and integrate a quality risk scoring system directly into their payment solution. It's an obvious product expansion for someone like Stripe. Kind of hard to believe they haven't already gone after this.
PayPal does to some extent. And then people complain about how expensive PayPal is. In a commodity, race to the bottom world of cc processing I am not sure it would be a good business practise to bundle fraud prevention and processing. Let people be bitten and then willing to pay to avoid it is probably a better practise than charging for it up front. But they do buy them. ACI bought ReD last year for instance http://www.aciworldwide.com/news-and-events/press-releases/a...
Re: Candy Japan hit with credit card fraud
#13Interestingly enough I found this subthread from an HN Post earlier today to be very relevant: https://news.ycombinator.com/item?id=10234561 > Regarding his fraud issue, I found that my website was being used in the same way when I added a credit card payment form. I implemented a system that first does an "Auth". If that passes, then I pass details to MaxMind and get back a response with a "riskScore". If the score…
This issue is so costly and prevalent that I feel its a huge disservice for companies that offer credit card services to merchants to not either 1) mention this issue and recommend a fraud check service, or 2) include fraud protection in their service. I actually ran into an issue a little while ago in that I allowed my MaxMind account to run out of queries. Not realizing this, I saw a few days of higher than normal…
All of mine seemed to come from Mexico. Either IP being in Mexico or the shipping address being there.
Still many orders originating from Mexico seemed like they might be genuine, as the customers had filled in the questionnaire with their favorite animes etc. valid looking answers, so I didn't want to block the entire country.
My theory is that there really was some kind of media mention there, which resulted in some real orders but also some fraudster happened to hear about the service that way as well. it seemed possible that I had been mentioned in some local
Re: Candy Japan hit with credit card fraud
#14Interestingly enough I found this subthread from an HN Post earlier today to be very relevant: https://news.ycombinator.com/item?id=10234561 > Regarding his fraud issue, I found that my website was being used in the same way when I added a credit card payment form. I implemented a system that first does an "Auth". If that passes, then I pass details to MaxMind and get back a response with a "riskScore". If the score…
Something like a simple proxy / VPN IP detection should be used because I assume most of the "carders" don't use their home IPs. There are decent free solutions online like W I T C H and GetIPIntel.
Re: Candy Japan hit with credit card fraud
#15Currently we're integrating Sift Science to avoid this otherwise serious and annoying issue. I think it happens to everyone who's directly accepting credit cards online. Does anyone have experience with Sift Science or similar services? (I know MaxMind has one but that, to me, seems inferior to SS's.)
Re: Candy Japan hit with credit card fraud
#16Sorry that you have to deal with fraud and loose money! Could you start shipping biscuits or chocolate candy again, I am a bit disappointed with the stuff you currently include in your packages :-(
Thanks for the feedback. Chocolates are not so good to send in this weather (melt risk), will start including those again during colder months.
Re: Candy Japan hit with credit card fraud
#17Second article in one day mentioning how bad credit card fraud can be to handle, especially for smaller sites. I wonder if there might be an opportunity there? Or if the solutions have to be so custom that it'd be impossible to work out.
From the article, it sounds like they are working in using an existing fraud detection service, would be interesting to see what goes into that sort of service.
Presumably, it would at least involve implementing "Verified by Visa", which protects online transactions by requiring a password or PIN.
Mastercard and Amex have equivalent services, and these are all widely implemented by websites and card issuers in Europe and other countries.
I suppose they are not so widely deployed in the USA or Japan, but at the very least, you'd protect yourself against fraud involving cards issued in countries that do use it.
Re: Candy Japan hit with credit card fraud
#18From my experience running eCommerce sites, the author is right, beside fraud 'noise', fraud happens in waves.
Re: Candy Japan hit with credit card fraud
#19From my experience running eCommerce sites, the author is right, beside fraud 'noise', fraud happens in waves.
That was my mistake, assuming that since I was OK with the noise, everything is fine. Didn't know about the fraud tsunamis.
Re: Candy Japan hit with credit card fraud
#20Would verifying zip codes mitigate this issue, or do the carders have access to that too?