Ecommerce Fraud

voLdie

voLdie

Cody
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Sep 3, 2015
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Been growing my ecommerce company over the last year and doing pretty damn good revenue wise.

Figuring out inventory, shipping, and ecom. focused SEO has been a bit of a curve but came with time.

The issue that destroys my sleep an stress levels...

...Mother fucking fraud

I use Authorize.net to process payments and can't use anything else due to my product category being high risk (firearms parts & accessories).

There is nothing worse than 3 months down the road having chargebacks roll in and $500 to $1000 being ripped from my account when managing cash flow.

I have done the following so far to attempt to mitigate the issue:
  • Billing and Shipping addresses must match
  • AVS Verification for ZIP code (manual review on street address mismatch)
  • CVV verification
  • Integrated MaxMind Minfraud for verifying IP reputation and overall customer fraud metrics
  • Flag suspicious transactions using Authorize.net's internal fraud algo.
  • Blacklist based on transaction attempt velocity
  • Require signatures for orders over $300
  • Manually Google Maps / Zillow the address to ensure these aren't sketchy ass abandoned houses or CC fraud "drop" locations
I didn't start with all of these and it may just be some fraud/chargebacks rolling in prior to authorization but it sucks feeling sick shipping bigger orders not knowing if you will be fucked down the road.

I have looked into solutions that average a minimum retainer of $500 to $1000 per month but I am not sure if they are capable of doing better than the above and what is simply "sales" speak on the website vs actual better prevention.

Anyone with experience at scale defending against ecom. fraud specifically in higher risk industries?

Thanks
 
No one actually has a problem with serious solutions that benefit members here.

You asked a question, we didn't have a solution, you found a solution, and to help the overall forum and members you posted the solution you found for future generations. That's beautiful.

Everyone can tell who the problem child posters are. The brand new guy, new as in registered TODAY guys.
 
voLdie said:
FYI I found the solution.

https://www.nofraud.com/ works flawlessly. Covers chargebacks, automated and manual fraud analysis.

Comes in $250 to $300 per month which is cheaper than hiring in-house.

Freed up a ton of time and sleeping way better.

Not traffic leaking btw lmao :wink:
Click to expand...
what is their success rate with chargebacks? we do this internally but would love to outsource it
 
@zelch the plan I am on covers chargebacks up to $500 immediately and then they fight it out. I've only been up for a month but chargebacks decreased by over 90% and the few left I was compensated for and their still being fought out.

The other benefit that I didn't think would be a thing is they are approving some shit I normally would have voided/cancelled. More $$$.

They also verify via text and phone to help make sure things are legit along with reviewing a customers transactions across all of their clients (they have some fairly large ones so tons of data).

It is beyond worth it knowing a company is betting their own money on if an order is legit or not. I feel like this is rare in most industries.

I would do it. I can literally feel space in my brain freed up. They also integrate into the big platforms so order status updates are all automated.

Shoot a request and they will walk you through a demo tailored to your business.

It really sounds like i'm shilling but it's rare you find any kind of product that makes you happy to pull out your CC every month.
 
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