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  Post #1 (permalink)   04-25-2012, 07:09 AM
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Have any of your clients ever paid using fake credit cards? How do you deal with this? A friend of mine (selling content writing service, not hosting service) has just been scammed this way.

  Post #2 (permalink)   04-25-2012, 07:47 AM
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There are some people trying to save a few dollars here and there but I have never, thank God, encountered these frauds. I hate losing money, especially these days when I'm investing.

  Post #3 (permalink)   04-25-2012, 07:53 AM
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I haven't experience people paying with fake cards (your payment gateway should detect this) but I have had people pay with stolen credit cards.

Probably the best way to deal with this is by using phone verification on orders (Maxmind for example).

It will always happen from time to time but you can significantly reduce the amount of times such orders get through.

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  Post #4 (permalink)   04-25-2012, 10:18 AM
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Nope, not faced this issue and hope to never do so!

Fraud is growing every day, it is not good!
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  Post #5 (permalink)   04-25-2012, 02:40 PM
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Not sure how you can use a "fake" credit card. It has to be associated with a bank an account to actually clear payment. Usually stolen cards are used for online transactions.
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  Post #6 (permalink)   04-25-2012, 03:27 PM
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Like Energized said

Only a real credit card will clear a actual bank, therefore a fake credit card will never make it in a pass state for whatever provider you are using... unless there is perhaps some sort of exploit specific to that provider?

There are dummy cards for testing purposes but they will still not show on a statement or make pretend that real funds have been cleared.

There use to be credit card # generators like back in the 90s, but I think there is enough security where those are not usable.

The only way is to use a stolen card/identity

Sounds like your friend was making things up.
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  Post #7 (permalink)   04-25-2012, 09:18 PM
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We verify all orders manually no matter how it's paid. This accomplishes two things for us. First it lets the client know we have received their order and allows us to reach out to the customer to understand their needs and see if what they ordered was actually a good fit for them or if they need something else even if it's not with us, and it allows us to verify information about the account.

Granted this takes extra time and we may loose some sales because we don't have "instant" activation, but I personally can sleep better at night knowing that we took some extra time to talk to our clients as well as prevented any possible fraud attempts.

In the event that something is unsettling with the call, we will ask the client to submit supporting documents verifying who they are and they are authorized for the transaction, especially for larger orders or unusual requests. Sometimes this may include a statement on company letter head, or the name/telephone number of the department manager, contacting the issuing bank of the card or check used for services to verify funds, and other methods.

The key to fraud prevention is to have many layers and trust your gut. When in doubt, verify.
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  Post #8 (permalink)   05-10-2012, 08:36 AM
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Right i see two things here.

Fake Credit Cards - Payment Processor should automatically detect it while the transaction is being screened through various security validation checks

Stolen Credit Cards - Payment Processor would pass a transaction from a stolen card, so to prevent this i would suggest you turn on callback service like, Maxmind in WHMCS

This would help you t authenticate the user and verify him/her as a legit user.

  Post #9 (permalink)   06-13-2012, 11:22 AM
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work via paypal

Well, if he paid for a fake card, blocking the goods.

  Post #10 (permalink)   06-13-2012, 12:32 PM
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Fraud is not going to go away anytime soon, people will try to get away with anything if others let them. Take the offense and the defense to help cut the flake out.
Please your clients & thank them from time to time.......they are just like groupies that keep the band going strong.

  Post #11 (permalink)   06-14-2012, 05:56 AM
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Recently a friend of mine asked me to pay something for him at HostGator with my credit card. They called me and took me through a bunch of security verifications to see if I'm not using a stolen credit card. It was tiring but it should be like that for suspicious transactions, for example, where billing and registration info do not match.

  Post #12 (permalink)   06-14-2012, 06:26 AM
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There are no "Fake Credit Cards". There might be a cards used with a fake name or a part of the billing address different from the original one. I have seen and my company has prevented many different online scams through the years. However we have never seen such thing like "fake credit card".
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  Post #13 (permalink)   06-14-2012, 03:16 PM
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Paypal isn't a trusted Payment gateway according to our experience. A separate business other than hosting services faced such problem even though they used Maxmind Fraud Protection the scammer were able to pass the Maxmind protection, Paypal fraud and paid the invoices after 30days Paypal reversed the money back to the customer saying that these transactions are unauthorized by customers or owners. Paypal won't protect seller as much they protect buyers and I think they help scammers more that way

  Post #14 (permalink)   06-15-2012, 09:33 AM
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I see more and more businesses dropping PP option from their payment gateway offers. Personally I don't like it, both as a buyer and seller.

  Post #15 (permalink)   06-15-2012, 12:28 PM
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Originally Posted by Zagor View Post
I see more and more businesses dropping PP option from their payment gateway offers. Personally I don't like it, both as a buyer and seller.
we only keep PP as a payment option as this is how our own suppliers take payment. so makes it easier for us.
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