Having not dealt too much with CC payments previously, I'm now confronted with increasing numbers of fraudulent payments. I hadn;t realised that it was just so easy to get away with...

So the bank are now advising on checking all payments made with foreign sounding names and saying to retain all CC details for checking given addresses. Of course the banks don't let you check this automatically at transaction time, so this means storing CCs. Alternatively use 3D transactions. In my view 3D is just plain alien to too many folk - the one time I came across it I certainly put some serious thought into whether or not to continue with transaction. I dont like leaving one site to go to a banking site (aren't they the ones being phished all the time) to re-enter my CC details.

How are others dealing with this issue?

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During a weird little period when I worked for Paddy Power, we used to verify every CC with an external company (cannot remember the name as I type this.) We would either fax a list of CC numbers / details or ring them and get them verified over the phone. I think it cost €1 per CC check.

We block orders from most of Asia to start with

We also use the 3 digit verification and 3d secure - it doesn't matter whether it's foreign to people or not - it not only reduces fraud but also reduces our liability

Getting chargebacks of several thousand euro is not my idea of fun!

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I have found that 3d secure is the reason for 50% of our abandoned sales. I believe the CC companies have not done enough to educate customers about what it is and why they should use it.

RC - does whoever process your CC offer fraud checking? For example I know Realex offer it as part of the service?

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We have it constantly with non-EU nationals looking for letters of invitation to attend events in Ireland for visa purposes - bane of my life! Many of the transactions are caught at authorisation point, but at least one or two get through every week. It's a little easier for us - we can see that a gentleman whose email address is george@yahoo.com but who claims to be representing the Ghana Standards Board (just one recent example) is unlikely to be genuine.

Our system notifies us with name and email address of every transaction. Any yahoo/gmail/hotmail addresses are checked before the end of the trading day. If the name on the card does not match the name on the email, or if we have any reason to suspect that the transaction is not genuine, we void the transaction and contact the email address. Most times the phrase "The authorities have rejected your transaction. Please send verification that you are the cardholder" produces silence.

In one case, a client of ours offered a refund on an event that was cancelled. She unwittingly offered it to a fraudulent transaction that she didn't catch (our system connects into their realex a/c directly, so we don't check the transactions). The gentleman sent over his bank a/c details so that the payment could be refunded into that instead of the card... hmmm... me smells interpol...

If you're using Realex, be ruthless in checking and voiding transactions that you have any doubt over - you can always contact the genuine ones later and pick them up.

Good luck soldier! Sarah

Unfortunately not for Irish addresses and the business is Ireland only...

I think this might also rule out dude's suggestion, but might have to research that some more.

It appears there is little that can be done barring 3D and I think when you have an average sales value in the €00's the abandonment cost of adding in the (crappy IMO) 3D step just doesn't cover the benefits involved.

Welcome to Ireland where online fraud is apparently very welcome

Have you looked at using one of those online fraud detection systems?

Depending on the system you are using it could be very easy to setup.

MaxMind - Credit Card Fraud Prevention

I agree with this.

3d is the way to go. We did it and despite the fact that we are loosing probably 50% of the sales, I don't care.
At least I sleep better a night.

Last year we lost a lot of money because of charge-backs, and since 3d secure was implemented, we haven't lost a penny as the liability falls on the issuer if they are ready or not.

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I'm going to disagree with you on this one - I'd rather put down fraud as a cost of business than lose 50% of my sales. Why should the vendor accept an obviously flawed system from the banks? Even if they simply validated the correct addresses then it would be one less chink in the armour.

3d will never work IMO given the inept response on the part of banks to phishing - if they are telling customers never to enter their authentication details into unsolicited pages how on earth is the average Joe to know the difference between the 3d interface and a phishing attempt?