So i've been considering changing my AVS policy. Currently our gateway is Paypal WPP, and if the AVS does not match then we do not ship the item out. We notify the customer and they have to fix the problem. I would say 30% of our customers however always want their item shipped somewhere else other then the billing address. In doing so, AVS will always give an error. We usually ask the customer to add the shipping address onto the credit card that they are using, but that seems tedious at times and the customers get frustrated.
I'm curious as to what you other shop owners do regarding shipping to another address. Do you guys let it slide, or do you guys use some other means of fraud protection on top of AVS?
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6 replies to this topic
#2
Posted 17 December 2008, 03:52
Hi Jason,
We've just been exploring these issues ourselves, as we recently suffered a case of CC fraud and were out $608 (see this thread)
We are about to start requiring the 3-digit CVV number. If this does not match, we will not allow the sale. Period.
We also use address verification, but we only insist on a match for large (over $400) orders, or orders from high-risk areas (for instance Africa, Indonesia, Singapore, Hong Kong). Unfortunately, address verification from these areas is not always available in any case. Then, we must judge orders on a case-by-case basis (how clear has the communication been? Can we verify that the address and phone number exist? Are they using a free e-mail service? Are people with several different names involved? Etc.)
For myself, I would allow shipping to a second address as long as the person was in the same country, or continent, as I was and as long as there were no other "red flags" about the order.
There is much more to learn about e-commerce security issues than I can hope to know, but this is our progress so far.
Best of luck,
~Wendy
We've just been exploring these issues ourselves, as we recently suffered a case of CC fraud and were out $608 (see this thread)
We are about to start requiring the 3-digit CVV number. If this does not match, we will not allow the sale. Period.
We also use address verification, but we only insist on a match for large (over $400) orders, or orders from high-risk areas (for instance Africa, Indonesia, Singapore, Hong Kong). Unfortunately, address verification from these areas is not always available in any case. Then, we must judge orders on a case-by-case basis (how clear has the communication been? Can we verify that the address and phone number exist? Are they using a free e-mail service? Are people with several different names involved? Etc.)
For myself, I would allow shipping to a second address as long as the person was in the same country, or continent, as I was and as long as there were no other "red flags" about the order.
There is much more to learn about e-commerce security issues than I can hope to know, but this is our progress so far.
Best of luck,
~Wendy
#3
Posted 17 December 2008, 05:37
jasyn, on Dec 15 2008, 10:01 PM, said:
I'm curious as to what you other shop owners do regarding shipping to another address. Do you guys let it slide, or do you guys use some other means of fraud protection on top of AVS?
Requiring CVV2 cuts down on fraud big time and also helps protect you from chargebacks. AVS can have all sorts of problems particularly with International orders. What you choose to do will be subjective based on your target audience, but our customers generally are not trying to rip us off and when they do it was not because of an AVW mismatch that we get ripped off. That being said we do try an initial AVS match, but if that does not work and we have CVV2 submitted (not captured mind you), then we call it good.
#4
Posted 17 December 2008, 18:48
zelf, on Dec 16 2008, 09:37 PM, said:
Requiring CVV2 cuts down on fraud big time and also helps protect you from chargebacks. AVS can have all sorts of problems particularly with International orders. What you choose to do will be subjective based on your target audience, but our customers generally are not trying to rip us off and when they do it was not because of an AVW mismatch that we get ripped off. That being said we do try an initial AVS match, but if that does not work and we have CVV2 submitted (not captured mind you), then we call it good.
we do require the CVV2 code for all transactions. how does that protect us from chargebacks?
#5
Posted 16 January 2009, 15:45
Using CVV2 will lower charge backs because it reduces fraud. You must have the CVV2 code which means you either need a photocopy of the card or the actual card itself. People who steal the card's magnetic information don't usually have the CVV2. All they can get is the CVV1 which can only be used when swiped.
#6
Posted 12 February 2009, 22:59
We have been having problems with authorizing any credit card transactions from outside USA.
This store is setup with Authorize.net and they get declined because of AVS problems. We modify the settings so it will not required the Street Address etc and is still happening.
One of the solutions that Authorize.net propose is to do Capture only... but that it would heighten the risk of fraud. Another thing that it was said in the conversation is that when address verification can be done they might get declined because the address is not spelled out as expected by the bank.
They said that there seems to be a pattern of fraud with credit cards from South Asia, Middle-Eastern and specially Venezuela.
I am afraid of just accepting credit card with no address verification; however, language sensitive issues like "-" and spellings can also produce a 'decline'.
At this point I still don't know what we should do with this store... all of the international orders get declined.
This store is setup with Authorize.net and they get declined because of AVS problems. We modify the settings so it will not required the Street Address etc and is still happening.
One of the solutions that Authorize.net propose is to do Capture only... but that it would heighten the risk of fraud. Another thing that it was said in the conversation is that when address verification can be done they might get declined because the address is not spelled out as expected by the bank.
They said that there seems to be a pattern of fraud with credit cards from South Asia, Middle-Eastern and specially Venezuela.
I am afraid of just accepting credit card with no address verification; however, language sensitive issues like "-" and spellings can also produce a 'decline'.
At this point I still don't know what we should do with this store... all of the international orders get declined.
#7
Posted 12 February 2009, 23:28
Hi Mr. Ed,
If you find that address verification is fouling you up, you can always do a little checking yourself ... try to find an online phone directory that might list the name and address, etc., just to give you some insight into its legitimacy.
After that, it's just a judgement call, and depends ultimately on the value of the order. If it's a fraudulent order, in the end you will lose the cost (not price) of the merchandise, and the cost of the postage. Only you can decide if you can afford to lose these amounts on the chance that the order is a good one.
~Wendy
p.s., The cost of the postage is one of the reasons why Air Mail orders of large amounts of merchandise to far away locations are such a bad risk.
If you find that address verification is fouling you up, you can always do a little checking yourself ... try to find an online phone directory that might list the name and address, etc., just to give you some insight into its legitimacy.
After that, it's just a judgement call, and depends ultimately on the value of the order. If it's a fraudulent order, in the end you will lose the cost (not price) of the merchandise, and the cost of the postage. Only you can decide if you can afford to lose these amounts on the chance that the order is a good one.
~Wendy
p.s., The cost of the postage is one of the reasons why Air Mail orders of large amounts of merchandise to far away locations are such a bad risk.
Edited by WoodsWalker, 12 February 2009, 23:30.
