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Candy Japan 2015 Year in Review

candyjapan.com

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Re: Candy Japan 2015 Year in Review

#21

Post by huac »

gingerlime wrote: post #3

Interesting to read about those fraudsters. Really annoying when you're a small business. I remember reading something similar from Gittip[0], and also mentioned on the linked blog post, jsbin[1]. I wonder what other small startups are using to detect / prevent this kind of fraud? Are there any good services in this space? and why won't recurly/stripe et al bundle this in? (or maybe they do, and I just don't know abo…

sift science is in this space and i've heard good vibes, but no hard numbers

perhaps stripe/etc doesn't invest in this space for risk or compliance reasons - when chargebacks slip past their filter (and they will), the merchant could claim that responsibility falls with stripe. right now, merchants are (almost?) always responsible for the chargebacks, which is fine for square/etc.

Re: Candy Japan 2015 Year in Review

#23

Post by fweespeech »

FWIW, as someone who has the same problem with fraud folks at $DayJob you really do need to go with a service to deal with that sort of thing unfortunately.

We use an internal tool from our parent company but yeah, you don't really have a choice but to assume a good chunk of your customerbase will try to cheat you.

Similarly, as long as the checksum is valid you should "complete" the order and handle follow up with issues [e.g. Card declined] at a later date. This can just be automated via email, with a 24 hour delay.

Honest typos won't pass the checksum, fraudsters will and the delay in the "failed authorization" also helps a good deal in discouraging such activity.

Re: Candy Japan 2015 Year in Review

#24

Post by huac »

smegel wrote: post #14

What happens with the fraud? Does the charge back affect the seller or the bank? Sucks if the former. What do other people/companies do about this? Surely all the CC frauds in the world haven't chosen to gang up on one tiny seller of niche candy from Japan...

beyond the cost of the actual purchase ($5 is pretty insignificant), card processors charge high fees per chargeback, and too many chargebacks (IIRC >1% of transactions) can get you kicked off and blacklisted from any reputable card processor for life

Re: Candy Japan 2015 Year in Review

#25

Post by bemmu »

smegel wrote: post #14

What happens with the fraud? Does the charge back affect the seller or the bank? Sucks if the former. What do other people/companies do about this? Surely all the CC frauds in the world haven't chosen to gang up on one tiny seller of niche candy from Japan...

I believe the seller, unless I just happen to have a particularly bad deal with my gateway.

Re: Candy Japan 2015 Year in Review

#26

Post by benlarcey »

bemmu wrote: post #19
benlarcey wrote: post #11

Earlier quoted context omitted.

I'm actually in the same space selling "hoverboards" and have been massively hit with fraudulent transactions. Luckily we realised fairly quickly and enforced draconian fraud checks, we're missing out on potential sales but the Buzzfeed is article is the alternative. I'm not sure which processor Candy Japan uses, but you can usually request to implement advanced fraud rules and strict settings that require Zip/postal…

Thanks, next year I want to get back and try to fix the situation. I fell back to PayPal only and have been losing customers since.

I'm not sure how strict you should go, we have gone to the absolute maximum - and have to deal with customer service issues / abandoned checkouts daily. But even requiring the ZIP code to be correct made a big difference.

We're also using shopify which has helped quite a bit with their built in fraud analysis (Not 100% but I think it's either signifyd or kount providing the data).

Alternatively, you could use Paypal Pro to negate the account requirement?

Re: Candy Japan 2015 Year in Review

#27

Post by AlexMuir »

I think Facebook or Twitter logins would go s long way to solving credit card issues. A credit card purchase backed by a 10+ friend FB account is unlikely to be a scammer. Legit Facebook accounts probably sell for more than the cc being tested.

Re: Candy Japan 2015 Year in Review

#28

Post by kevin_thibedeau »

AlexMuir wrote: post #27

I think Facebook or Twitter logins would go s long way to solving credit card issues. A credit card purchase backed by a 10+ friend FB account is unlikely to be a scammer. Legit Facebook accounts probably sell for more than the cc being tested.

That would disenfranchise people without such accounts. It would also be trivial to game by scammers and thieves to the point of being useless.

Re: Candy Japan 2015 Year in Review

#29

Post by placeybordeaux »

digikata wrote: post #10
gregwtmtno wrote: post #2

Before people suggest bitcoin--and I love bitcoin--it probably wouldn't solve this guy's fraud problem. Yes, it would stop the fraud, but there are simply too few people willing to pay in bitcoin.

Wouldn't bitcoin give rise to the opposite problem - consumers paying bitcoin now shoulder all the risk of buying from a bad vendor.

Yes, there are some ways to prevent that, but that basic technology leans towards that.
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