Credit Card Fraud

mjjbecker · Feb 24, 2000

I recieved an email from a reputable company recently saying that they would be unable to process my internet order unless I called or faxed them first to verify my credit card. The reason given was international credit card fraud. I have done business with five different dealers in the past and none of them have raised this issue.
The order in question was to be shipped to the same address as the card holder so I am wondering how this can be an issue for one dealer but not for another?

sarge · Feb 24, 2000

I have a friend who has a store front business coupled with a large web site presence. The web accounts for the majority of his business. I know at one time, his credit card fraud rate was huge, even though he verified with the card machine and only shipped to the same address as the card holder. On some orders, they would call to verify that the information was correct and that party had placed the order. He did a lot of his business internationally, and fraud from the former Soviet Union was becoming common place.

sarge · Feb 24, 2000

I have a friend who has a small store front speciality business coupled with a large web site presence. (He started on the Web) The web accounts for the majority of his business. I know at one time, his credit card fraud rate was huge, even though he verified with the card machine and only shipped to the same address as the card holder. On some orders, they would call to verify that the information was correct and that party had placed the order. He did a lot of his business internationally, and fraud from the former Soviet Union was becoming common place. This business is not a large corporation, just a private individual trying to make it in this world. When he gets ripped off for the sale, he has lost the profit, the cost of the merchandise and the international shipping charges.

Could be why other companies are asking for verification. Take no chances and know with who you speak before giving any credit card information over the phone and I would not send any by e-mail.

sarge

Ferret · Feb 24, 2000

I only got that treatment from one dealer (initials K E) but they ended up being so shonky that I ended up telling them to jam it after they charged my card for a knife advertised as last avail but which was actually on backorder.

[This message has been edited by Ferret (edited 02-26-2000).]

automantic · Feb 24, 2000

Originally posted by Ferret:
shonky

Huh... Wha? Hey! How'd an' Australian get in 'ere?

lol

Later,
John

------------------
Absentem qui rodit amicum, qui non defendit alio culpante, solutos qui captat risus homimum famamque dicacis, fingere qui non visa potest, commissa tacere qui nequit: hic niger est, hung tu, lamnia lammina lamna forumites, caveto!

Knives4Me · Feb 25, 2000

ive had companies ask me to fax over a signature, especially if it was a nice size order. i had no problem with faxing over a signature. more companies are doing it so get use to it. you sign a credit card purchase in a store, what make the internet different?

Ferret · Feb 25, 2000

Automantic, I'm flat out like a lizard drinking but you seem fair dinkum (not mad as a cut snake), on ya

PC · Feb 25, 2000

Hi,

Can someone clarify something for me?
As i understand it, once a Dealer/Shop has authorised a transaction with the credit card company and received a authorisation number, he is guarranteed payment even if the card turns out to be stolen etc.

Is this correct?

Thanks
PC

sarge · Feb 25, 2000

I was told no. If the card holder protested the charge, the card company would withold payment from the business. Even with the cred card machine verification. I think they had something like 90 days to do this in. They would always wait until the last minute and then protest. He said that it was like fighting city hall to challenge the card companies. They felt the monies always around 500.00 was too little to mess with. Easier to ding the merchant. The Soviets were using more sophisticated methods, stolen credit cards, cards opened fraudently, etc.

Nakano 2 · Feb 26, 2000

10- 4 Sarge. Unfortunately the CC companies lean heavily towards their card members. In a past retail business I' ve had seemingly satisfied customers who extolled the virtues of our work, service and merchandise but soon after had ultimately refute their charges!! Why? I' ll leave it to you folks to pick a name to describe these individuals. NOTE: each and every one of these incidences were with AMEX card holders...hmmm.

L8r,
Nakano

dano · Feb 28, 2000

I do alot of credit card fraud investigations, mostly dealing with counterfeit cards. I've had several counterfeit cards which were specifically ordered by the presenter, all names matched I.D.'s, billing info, etc...BUT the account numbers on the mag stripe do not match the account number embossed on the card. The last guy I nabbed but his card from a local casino. Internet CC fraud is tougher to deal with, because there is no physical suspect, no card to look at, etc...Until appropriate safeguards are used, the fraud is going to increase.
-dan