[Jewelry making - Article 00558] - Re: [Orchid] Internet fraud against jewelers

[Hanuman]

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    All;

    Here are few pointers to consider when processing an online order. 

    All internet orders should be considered fraudant unless proven
    otherwise! 

    Your Online credit card payment provider will provide you with an
    authorization to charge your customer account if the card is valid.
    Otherwise the card will be rejected. 

    IT IS YOUR responsibility is to verify that the card owner was the
    one who placed the order and not someone else!. 

    1. Verify the AVS (Address Verification System). Don't ship unless
    both the address and the zip code submitted match the bank's records.
    (AVS=4) 

    2. Use CVV1 and CVV2 verification. CVV are those 3 digits that are
    not embossed on the card. (3 digits to MasterCard and visa, 4 digits
    to American Express). A match will give you loose indication that the
    card is at the possession of your customer. 

    3. Evaluate the order. Most internet users will NOT place an order on
    their first visit to your site. The Internet standards are 4.5 visits
    before actually placing an order. Have your system track this
    variable and pay an extra caution for those who place an order on
    first visit. I like to call it "The Shake hand factor" (SH>0 is fine)
    SH factor which very high, lets say 30, might result of a bad site
    design.... 

    4. Compare the order $ value against the average online sale value of
    your market. FYI Gem and jewelry online sales average at $ 254. 

    5. If you have a shopping cart installed. Be extra cautious for
    orders submitted by email, especially from free web based email
    account (hotmail etc) 

    6. Evaluate the order composition. 2,000$ order shipped by 8$ airmail
    smells fishy.... 

    7. Always have a proof of shipment, FedEx airbill for example. It
    will help you resolve chargebacks. 

    8. Get the IP of your user and resolve it to its geographical
    location. You may surprise how many honest looking orders resolves to
    Russia, Indonesia and other online fraud centers. here is a good tool
    that you can freely use 

    http://www.networldmap.com/TryIt.htm?GetLocation 

    9. Consider blocking access to your site from countries of high risk,
    or countries that you don't have an intention to serve. This can be
    done based on the user IP. A great service is GeoIP Free Country, by
    MaxMind - http://www.maxmind.com/app/geoip_country  

    10. Determine your risk factor. Online credit card payment ARE RISKY,
    you can limit the $ value orders you are willing to accept online.
    For greater amounts ask for a wire transfer.... 

    11. Most important - Be calm. Don't rush to ship until you are
    positive that all signs indicate an honest transaction. If you have
    just a tiny suspicion, ask your customer to FAX you an authorization
    form. 

Hope it helps
Hanuman



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