At 02:59 PM 1/2/02 -0800, you wrote:

> > > I have another question, though: at what point do I report the CC# to 
> visa?
> > > Or contact the ISP with the IP/timestamp that I have logged? Any 
> suggestions?
> > > Or do I just walk from it? We've actually been doing this for well over a
> > > year and never once had a chargeback or fraudulent attempt. I guess 
> that's
> > > been lucky.
> >
> > My suggestion would be to contact Visa now and mention that you had a
> > suspicious attempt to use CC# x.  Give them all the info you have on the
> > guy and say "I don't need to know anything else, just that you will
> > contact the rightful cardholder and let them know about this issue."
>
>The CC companies don't care what the merchants have to say... we have
>tried reporting CC fraud to them (as a merchant).  They said the
>cardholder must report the fraudulent usage of their card (usually after
>the fact).  I remember one time when the thief had the complete name,
>address and telephone of the actual cardholder.  We called the card holder
>to confirm and discovered it was fraud.  We contacted Visa and they stated
>the card holder must file the report.  We then told the cardholder that it
>might be wise to contact the issuing bank and discuss the problem...

Our experience is that in cases where the cardholder is a party (i.e. we 
confirmed with the cardholder that it is fraud) that the issuing bank will 
want the cardholder to report it.  I don't know why, exactly, but that has 
been our experience -- so we tell the cardholder they need to do so for 
their own protection.

In contrast, however, we have had situations where a domestic card (i.e. 
the cardholder lived in Ohio) was submitted to pay for an order, but the 
originating IP address was located in Romania.  In those cases, we contact 
our Merchant Bank and got the fax or telephone number of the issuing 
bank.  We then call, or fax, them to report that the card may have been 
compromised.

Within the last week we had almost a carbon copy of the above situation and 
contacted MBNA.  They told us that they were putting a security hold on the 
account and would telephone the customer.  They get to be a hero with their 
customer.

I think it behooves all of us to do something in an effort to combat credit 
card fraud.  Who knows, the recent report to MBNA may have save you or 
another "card not present" merchant from a loss and a charge back.

FWIW


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Don Brown - Dallas, Texas USA       Internet Concepts, Inc.
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