Hi Michael, We hacked our own. We use a combination of checking the IP address for a reverse mapping to country where the customer is connecting (doesn't work with AOL IP's, arg), assigning a risk level based on country of origin for the purchase, plus some other factors. Chance of chargeback is much higher for a new registration than it is for a transfer, for example.
Our system isn't perfect and I've a few areas where I know we can improve. We also changed to a processor that supports the CVV number on credit cards. All of these steps together have helped reduce the risk from chargebacks, certainly to the point where we could not justify the added expense from one of these external services. The two biggest risk reduction factors we've found are the IP check & using the CVV. Doug. Quoting "Michael J. Masin" <[EMAIL PROTECTED]>: > Is anybody using one of the neural/fraud-scoring services by the > gateways? I'm wondering if it's worth the extra $$$... > > thx, > m2 > > At 01:03 PM 5/15/2002, you wrote: > >Hi Ken, > > > >Anything with a 10 year registration should be looked at for fraud. > When it's > >not your money, why not go for the full period? Until we smartened up > on > >this, > >about half of chargebacks had 10 year registration periods. > > > >It's also a good idea to compare the address given with reverse lookup > on > >the IP > >given with the order. It's common for fraudulent transactions to have > a > >mismatch. > > > >Thanks, > >Doug. > > > > > >Quoting Ken Anderson <[EMAIL PROTECTED]>: > > > > > Attn: > > > > > > Watch out for fraudulent registrations and transfers submitted via > > > marketscore.com proxy service (so the real ip is masked). > > > Common elements in registrations are 10 yr reg period, and liberal > use > > > of ALL CAPS with [EMAIL PROTECTED] as the email > address. > > > The phone & fax numbers are usually disconnected. > > > We've seen 4 of these come through in the last month. The first one > got > > > > > > through. Credit card will be valid, but stolen. > > > Chargeback comes later :-( > > > > > > ------------- > > > access_log.0:66.119.34.39 - - [06/May/2002:04:09:51 -0700] "POST > > > /cgi/reg_system.cgi HTTP/1.1" 200 1320 > > > access_log.0:216.148.244.38 - - [06/May/2002:04:11:07 -0700] "POST > > > /cgi/reg_system.cgi HTTP/1.1" 200 1320 > > > > > > > > > host -a 66.119.34.39 > > > Name: proxy.ia2.marketscore.com > > > Address: 66.119.34.39 > > > Aliases: > > > > > > host -a 216.148.244.38 > > > Name: proxys.sjc.marketscore.com > > > Address: 216.148.244.38 > > > Aliases: > > > -------------- > > > > > > Ken > > > Pacific.Net > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
