>>> assumption - renewals are not likely to be fradulent charges >>> assumption - registrations from existing customers are not likely to be >>> fradulent charges
I would say "less likely" rather than "not likely." A new customer who registered a domain last week is not any less risk than the one who registered today. "Not likely" would more aptly apply after a period of time, say 90-120 days. >>> Found a company transact-secure that basically offers insurance for online >>> cc purchases. Transact-secure will only validate transactions from U.S. customers and the customer is required to enter their social security number (so expect a dramatic increase in your abandon rate). If you only do business with U.S. customers and use AVS, this in itself, will substantially reduce your risk from fraud. However, it has been my experience that if you only do business with U.S. customers and if you decline all transactions for which AVS fails, you will reduce your revenue by about 30-50%. >>> 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 First, not all chargebacks are due to fraud. Also, there is no average amount for a fraudulent transaction. Managing fraud risk is a process of managing deviations from the norm. Suspect transactions are those that deviate from what is normal or average for *your* business. What is 'normal' varies from business to business, even within the domain registration industry. There are many things you can do to minimize risk. You should concentrate on methods to *minimize* your losses should fraud occur in addition to trying to detect it in advance or eliminate it. Rich Shockney RS Marketing -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of Michael Brody Sent: Saturday, November 17, 2001 2:36 AM To: [EMAIL PROTECTED] Cc: [EMAIL PROTECTED] Subject: Credit Card Fraud 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
