News: Online Payment Fraud Approaching Rate for Stores, Study Says

[Jimmy Cooper]

Article:
Online Payment Fraud Approaching Rate for Stores, Study Says (http://www.internetretailer.com/dailyNews.asp?id=18478)
Source: Internet Retailer

Snippet:
"48% of online retailers say they their chargebacks for fraudulent purchase transactions is less than 0.1% of sales, matching the card-present chargeback rate experienced in physical stores, the Merchant Risk Council reports in its Fifth Annual Survey."

Talking Points:
Have you seen an increase over the past year in fradulent activity? What steps do you take to minimize fraud? Any tips to share with your fellow merchants?

[Bruce - PhosphorMedia]

Our clients don't experiance much in the way of direct fraud...their biggest concern is getting hit for transaction fees when folks use their site as a "credit card number" checker. That is, they run scripts or manually try to process card numbers through their gateway. One client got hit with $3,000 worth of charges (talked them down to 1300...but still) before they knew anything about it.

Installing <a href="http://www.modulestore.com/qwkguard-miva-merchant-module.html">QwikGaurd</a> solved 99.9% of the problem.

The key is that you never know this is happening until you get your Bill!!!

[David Pontius]

We print out a pending transactions list from Verisign every morning. Anything that looks funny, high charges, multiple denials and then a success, etc. gets a second look.
We also use OpenUI to put time-outs between multiple card attempts, and require CVV. Those two options have almost eliminated bulk card fraud completely.