Fraud is prevalent in all Internet transactions, especially when the product is intangible. We have been in this industry long enough to see significant growth and development. We have also been here to see the growth and development of fraudulent activity. We would like to remind you that it is important to utilize 2Checkout’s fraud review. We have the advantage of state-of-the-art software and a knowledgeable staff with 35 years collective experience. In addition to our fraud review, we encourage you to utilize the information made available to you in the administration area. We would like to give you some tips on how to recognize legitimate orders while preventing fraud.
While it is important to mitigate fraud, you want to be sure that you are not inadvertently denying legitimate business. With the current credit card system in place, we are not as protected as a traditional retailer is. Because we are working in a “Card Not Present” environment, chargebacks will occur. We have found on average, 12% of your orders may appear to be suspicious, but only 1% will end up being fraudulent. It is very important that you don’t insult the 11% legitimate customers just to catch the 1% fraudulent customers. While working with digital products, losses are less formidable because there are no shipping fees and no items to be lost. The following information will help you to differentiate between legitimate customers and fraudsters.
Our administration area has many pieces of information that should receive consideration when fulfilling an order. Among the information you should be taking note of is the amount of the purchase, the credit card used, the AVS and CVV responses, the language of the sales page, name, email, billing address, and IP address. When reviewing an order, be sure that the amount of the sale makes sense with what is being purchased. If a customer places multiple orders in a short period, pay attention to the card being used for each sale. If you notice many transactions being placed with multiple credit cards, this is a possible indication of fraud. American credit cards have built in security features such as AVS (address verification system) and CVV (security code on the card). Although our system captures this information, it is not always 100% accurate. You should not depend solely on these two pieces of information, as we can receive inaccurate responses. People move and the security code can be rubbed off the card. You should not base your decision on these two pieces of information alone. Use this information in conjunction with the other tools available to you to make your determination.
The information on the sales page can tell you a lot about the customer as well. The name, the email address, the language of the customer, the IP address, and the billing address should have some continuity. If you notice discrepancies between the IP and billing address, this can be an indication of fraud. Likewise, if you notice discrepancies between the name, email address, and language of the customer, this can be an indication of fraud. Keep in mind that in today’s world of business, it is common to see discrepancies between these pieces of information. Please consider all of this information when you receive our fraud review. We strongly advise that you do not fulfill services until receiving our review. Unfortunately, we cannot guarantee that our review is 100% accurate. You know your business and customers better than we do, so it is important that you review the orders as well. If at anytime, you feel that we have made the wrong decision, or you would like a second opinion, please contact us and we will be pleased to conduct a manual review.
2Checkout has matured with the evolution of fraud. We continue to compile various tools for you to use. Utilizing the tools available to you can help differentiate between fraudulent and legitimate orders. As long as you consider all the information when fulfilling services, you should be able to mitigate losses due to fraud. The importance of keeping your insult rate low cannot be overstated. Allowing legitimate business is far more important than catching every fraudster. You can contact us 24 hours a day 7 days a week. We are here for you.
By Jamal and Nathan
