Been doing research on preventing CC fraud. Wanted some feedback on the following logic before i write a code snippet.
assumption - renewals are not likely to be fradulent charges assumption - registrations from existing customers are not likely to be fradulent charges logic- when a new order is placed check if the customer exists in database. (local database as an existing customer of your site) if the customer is a 'new' customer consider this a fraud risk. Found a company transact-secure that basically offers insurance for online cc purchases. They charge 0.5% per transaction with a minimum fee of $.50 per transaction. set a transaction threshold - say for all transactions of $100.00 or more, for this i think we would have to pool our knowledge of the average charge that is charged back by the credit card companies if transaction amount is over threshold and customer is new customer use the transact secure service else process without the transact secure service. of course use the IP logging and other stuff to scare off potential fraud before it gets to this point... (each fraud we scare off is a potential 0.50 savings in not going through the service) Only downside to transact secure that i see is that the verification is done on their web site... not a big fan of having people go off the site for any part of the transaction... Note to Chuck and William No this is not spam.. I do not work for transact secure nor do I get any commision for anyone who signs up :) Michael tldsystems.com
