My CC merchant account company said something like "domain registration
falls into a 'low risk business' cathegory; the number of fraudalent cases
reported do not exceed the figures found in the case of other similar online
services".
I think CC frauds are not really attracted to domain registration, because
they cannot do anything with a "stolen" domain. After a while it goes "on
hold" anyway... so they cannot use it, nor sell it. (It would be to risky
anyways.)
Dealing with offline credit cards always makes it necessary to include some
extra headroom to cover the loss caused by fraudalent transactions. However,
accepting a CC is always costy... I think altogether 5% covers the loss due
to CC processing and frauds in most of the cases. For some more problematic
countries it might be 8-10%, but that is still not too much. (I was informed
that chargeback losses are rarely over 5% even in the case of sex sites.)
- Cs.
----- Original Message -----
From: "Philippe Landau" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Cc: <[EMAIL PROTECTED]>; "ecs" <[EMAIL PROTECTED]>
Sent: Monday, August 21, 2000 11:11 PM
Subject: CC fraud and charge backs (was: Pricing and domain delete feature
> >In my personal opinion, OpenSRS charge back policy and total
> >lack of control by the RSP on a domain name is a much more
> >serious problem than their pricing policy.
>
> We are about to start reselling domain names through OpenSRS,
> but are afraid of credit card fraud and charge-backs.
> Tucows, do you have numbers on this,
> by how much should we increase our price to cover these costs ?
> What recommendations can be made to lower the risk ?
> May domain administration passwords be held back
> until the credit card charge has been approved ?
>
> kind regards philippe, http://A-Z-Internet.com
>
