Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Candy Japan hit with credit card fraud

candyjapan.com

Post reply on HN
Print view View original

121–130 of 208 posts

Re: Candy Japan hit with credit card fraud

#121

Post by paulhart »

Reason077 wrote: post #57
foota wrote: post #22

Earlier quoted context omitted.

I'm obviously not an expert, but is there a way to require someone to enter the pin that they use when they buy something in person? (I also found the following FAQ from the link you gave amusing "Why do we need Verified by Visa? Hasn’t Visa been taking my security seriously before?")

The actual authentication mechanism is left up to the card issuer. But using the card's PIN would be considered insecure due to the risk of malware/key-loggers intercepting it. My bank asks for three random characters from my online banking password (the same mechanism used to log in to my online banking) which provides enough security without risk of revealing the full password to key-loggers.

Which may mean that either the bank is storing your password as plaintext (or is hashing every three character combination possible, which would also help a hacker figure out the plaintext).

Re: Candy Japan hit with credit card fraud

#122

Post by computer »

Maarten88 wrote: post #100
rplnt wrote: post #93

Earlier quoted context omitted.

Having visited NL, my card was practically useless. Any other country no problem, but Netherlands? So I don't understand you really. That being said, direct payment gateways are common, but they require cooperation with banks. There's probably hundreds of them and only make sense on local market where you can have on or two implemented to satisfy 80%+ of customers (and others will just use regular card).

> my card was practically useless That's because merchants pay 3% or more for a creditcard payment, and something like 0.8% for a local bank card payment (with the online equivalent iDeal). On top of that, there is much more risk accepting the creditcard with chargebacks, while the banks guarantee normal/iDeal payments. So most merchants here really dislike creditcard payments, it "costs them" much more. Of course I…

Source for the 0.8% for local bank card payment? Last I read it was a fixed 4-6 cents per payment. See [1], for example.

[1] https://www.abnamro.nl/nl/zakelijk/betalen/tarieven/sepa-bet...

Re: Candy Japan hit with credit card fraud

#123

Post by seanmcdirmid »

rplnt wrote: post #93
Maarten88 wrote: post #83

Earlier quoted context omitted.

Living in Holland, where everyone does online transactions with iDeal, I find it hard to understand why the rest of the world is using credit card payments at all, for anything. It is massively insecure, it's expensive for the merchant, and theft is ignored (when millions of stored creditcard records are stolen, those cards are not invalidated and replaced?). This is all at the cost of customers and other merchants.…

Having visited NL, my card was practically useless. Any other country no problem, but Netherlands? So I don't understand you really. That being said, direct payment gateways are common, but they require cooperation with banks. There's probably hundreds of them and only make sense on local market where you can have on or two implemented to satisfy 80%+ of customers (and others will just use regular card).

Netherlands was also one of the few countries in the world that didn't take union pay (China's atm network), so my debit card was useless. If I didn't have my credit card I would have been totally screwed.

Re: Candy Japan hit with credit card fraud

#125

Post by meshr »

As I can see all solutions listed in this thread is to protect yourself better and let fraud happens for less protected merchants. The real solution is to fight back against fraud. All fraud attempts must be recorded in the public space, for example http://fraudrecord.com/ . The best solution is to have something like open blockchain Grossbuch for fraud. What are current best solution for FIGHTING BACK AGAINST FRAUD?

Re: Candy Japan hit with credit card fraud

#126

Post by acveilleux »

kalleboo wrote: post #111
LeonM wrote: post #97

Earlier quoted context omitted.

That's the whole point, in the Netherlands we use debit cards (known as 'PIN cards' to the locals) instead of credit cards. Usually these are Maestro cards. I don't know the exact number, but as a Dutch resident I guess that >99% of all POS transactions are done using such card, not a credit card. Cashiers in most common shops probably don't even know how to accept a payment by credit card, so the'll just refuse. Mea…

In many countries (such as where I'm from, Sweden, or where I live now, Japan), debit cards and credit cards are interchangeable, and you can't even tell by looking at the card if it's debit or credit. They're both VISA or MasterCard branded, and what's backing it is only the business of the cardholder, not the merchant. I remember Maestro cards in Sweden as being for under-18's, and then when you become an adult you…

In Canada, a distinction is made because the fees on debit are much lower (comparable to cash handling costs) and the banks have put tremendous marketing efforts in pushing for debit cards and branding them "Interac."

That said, the cards themselves use exactly the same technology, look the same and debit cards are usually Maestro/Cirrus or Visa/Plus compatible so we can do debit transactions in europe.

The online version of debit however has yet to catch on.

Re: Candy Japan hit with credit card fraud

#127

Post by acveilleux »

computer wrote: post #122
Maarten88 wrote: post #100

Earlier quoted context omitted.

> my card was practically useless That's because merchants pay 3% or more for a creditcard payment, and something like 0.8% for a local bank card payment (with the online equivalent iDeal). On top of that, there is much more risk accepting the creditcard with chargebacks, while the banks guarantee normal/iDeal payments. So most merchants here really dislike creditcard payments, it "costs them" much more. Of course I…

Source for the 0.8% for local bank card payment? Last I read it was a fixed 4-6 cents per payment. See [1], for example. [1] https://www.abnamro.nl/nl/zakelijk/betalen/tarieven/sepa-bet...

Given that a huge number of transactions will be near 1-2 euros, the average cost in terms of percent could really be 0.8%. Not that I've seen the numbers mind you.

Re: Candy Japan hit with credit card fraud

#128

Post by emodendroket »

germanier wrote: post #96
Reason077 wrote: post #91

Earlier quoted context omitted.

iDEAL is fine for transactions between a Dutch client and a Dutch merchant. Other countries also have similar, local payment solutions which bypass credit card processors (e.g. POLi in Australia and New Zealand) But it does nothing for a business like Candy Japan which sells to a global audience. The advantage of credit cards is that they are one payment system that works pretty much everywhere, worldwide. Also, you…

> global audience That's the reason they recommended to use a payment gateway that implements all those local payment solutions. For example, in Germany you loose a lot of customers if you don't offer direct debit (ELV) as many don't own a credit card (and don't want to). > you typically don't have the same chargeback rights when using a banking service like iDEAL This heavily depends on the service. For example, the…

> That's the reason they recommended to use a payment gateway that implements all those local payment solutions. For example, in Germany you loose a lot of customers if you don't offer direct debit (ELV) as many don't own a credit card (and don't want to).

I can't imagine wanting to give out my bank details to allow direct debit of my account to every online retailer I do business with. Weird.

Re: Candy Japan hit with credit card fraud

#129

Post by emodendroket »

rplnt wrote: post #93
Maarten88 wrote: post #83

Earlier quoted context omitted.

Living in Holland, where everyone does online transactions with iDeal, I find it hard to understand why the rest of the world is using credit card payments at all, for anything. It is massively insecure, it's expensive for the merchant, and theft is ignored (when millions of stored creditcard records are stolen, those cards are not invalidated and replaced?). This is all at the cost of customers and other merchants.…

Having visited NL, my card was practically useless. Any other country no problem, but Netherlands? So I don't understand you really. That being said, direct payment gateways are common, but they require cooperation with banks. There's probably hundreds of them and only make sense on local market where you can have on or two implemented to satisfy 80%+ of customers (and others will just use regular card).

Try Japan. Credit cards won't be accepted half the places you go and only a small percentage of ATMs will allow you to withdraw money from a foreign account at all.

Re: Candy Japan hit with credit card fraud

#130

Post by bemmu »

umziehennachbar wrote: post #124

1. How many sales would you lose if you required everyone to use PayPal everytime? 2. (What about Google cash? or Square cash?)

It's difficult to test, because by not having credit cards a lot of fake orders are now excluded, lowering the conversion ratio that way.

So if I did a test of showing only PayPal to half of customers and PayPal + credit cards to half, the one with CC could win just because of the fake sales.

Post reply on HN