Credit Card Fraud

[solafide]

Anyone has experience on how to handle credit card fraud, especially the chargebacks?

I've these idea, but unfortunately it's difficult to implement:

- blocking transaction from certain ip addr or email addr

- limitting transaction to 1 or 2 per day per buyer

- comparing geo-location of ip addr to shipping/billing addr



Any other idea?

[madrox]

isn't it up to the CC processor to do this? I'm asking out of ignorance as I haven't fully setup my online store yet.

[solafide]

"isn't it up to the CC processor to do this?"

I thought so too... Until I got hit with so many chargebacks it makes my head spin :(



Bottom line, the CC processor would simply take the money back from your account unless you can prove that you deliver the item. Which is impossible for digital stuff and makes your delivery cost very high for real/tangible stuff.

[E-junkie_Chef]

How about sending a postcard with the code on it and using delivery confirmation. So that will be like 75 cents .. but will be the tangible proof. Will that work?

[solafide]

The USPS charge $1.05 just for the proof of mailing itself (stamps are extra). That pretty much wipe out the profit for a small item, or make your price uncompetitive.

[E-junkie_Chef]

ok .. i've got something cooking in e-junkie kitchen .. give me a couple days