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I know it is very effective, the rates however are a little dissapointing:
Payflow Fraud Screen costs $39.95 per month for as many as 5,000 transactions per month. The combined package (with Payflow Pro) sells for $100 per month. Additional transactions are 15 cents each.
Hope this helps,
Best regards,
Alexander Bulgakov
Quantum Art
aleksandrbulgakov@artq.com
http://www.artq.com
The access you have to fraud software depends to a large extent on what countyr you are in or what country your transaction processor is in. If you are in the USA, most processors have some levels of fraud screening, one is called AVS, address verfication system and it checks that the shipping address matches the cardholder address. Unfortunately this is not available outside of the USA as I know in my home country, Australia, our privacy laws do not allow access to addresses of cardholders. If you are not in the USA, but want to use a USA processor and expect most of your sales to come from there then AVS is good.
You can construct your order form so that it forces people to give more details about themselves. People using credit cards fraudulently don't usually like to disclose lots of details about themselves.
Over this year it is expected in the marketplace that some transaction processors will bring in user freindly processing that requires external verification of the cardholder, a separate digital signature. This was the objective of SET but that didn't get off the ground because it was not user friendly.
Credit card fraud is very much a function of what you sell, ie gambling and sex sites have huge fraud levels. My own web site that sells ecommerce information at www.ecompublishing.com has experienced very low levels of fraud, much lower than one would expect in a face to face business. There are some free reports on my web site on this subject that you can access if you want.
Good luck.
Peter Kearney
My own view is that all fraud s/w has it's limitations and will not eradicate CC fraud and could inhibit legitimate sales. AVS is one of the most effective methods but is not very helpful to e-merchants selling flowers, perfume, jewellery, chocolates etc. for delivery to an address other than the cardholder's. BTW, AVS should be available in the UK by Q2 2001.
'Smart cards' with an embedded electronic signature provide the technical solution as they eradicate the "cardholder not present" scenario which is the underlying issue. However, the current infrastructural deficiencies on the web mean that this will not be a practical solution for some time to come.
The EC is calling on the online payment industry to provide the highest level of security for online electronic payments by mid-2002 'at the latest. (see, Net Fuels Surge of Fraud in Europe By Lori Enos E-Commerce Times February 20, 2001.
It may be that this initiative will jolt the payment systems industry into producing an effective solution but I suspect that market forces will ultimately drive this to conclusion. The reality is that the "Acquirers" (Merchant Account Holders) have no incentive to shift the balance of risk away from the merchants. They have been driven into accepting "cardholder not present" payments because telesales and online merchants demanded the facility. The more successful merchants will ultimately demand that the balance of risk be shifted towards the Acquirers. Maybe the EC has a role to play in "levelling the playing field".
At www.surfchek.com we have taken a more pragmatic approach to protect online vendors. As far as I am aware, surchek offer the only vendor guarantee on the internet. This service will be available to UK vendors from Q2 2001
