Chargebacks when delivering to another address?

[jastreet1]

Hi all,

We are in process of launching a new site and as part of the launch we are reviewing our payment process since many sites (including competitors and well know PC componant store eBuyer) deliver to an address other than the cardholders.

We are considering deliverying to another address on the basis that;

- The card billing address and secuity code match.
- 3D Secure matches.

But what are in the risks to us against fraud?. I understand a chargeback could still be raised due to 'goods not recieved' or 'not as described' etc. But can the buyer raise a charge back as an unauthorised transaction? What if we send proof of delivery and its not to the card holders address (bearing in mind the address/CV2/3DS passed) so on so forth?

What I am concerned about if loosing business, when I don't need to be? Other companies are doing it so there must be a way of doing.

Any advice would be great!

 

[dynamic08]

Don't ask here phone your card processor

 

[Mustaka]

Card Processor Here

Basically the UK AVS system is pretty much rubbish and should not be relied on. There is no problem with delivering to an address other than registered if you actually do some work and put in a decent policy for it and stick to it. Something like.

1. Google the address & or use an address checking service for both the registered and delivery address. Anything bad walk away from the sale.

2. Actually check the particulars of the order, ie a purchase with a card issued in France, an IP address in Argentina with a delivery address in the UK and contact number is a mobile and email is a throwaway should probably raise a few flags.

3. High value or strange orders of say them ordering 5 of something people normally order one is a big big flag. DO NO be afraid to tell a customer to pay by other means or sling their hook.

Lastly trust your gut. Once you have come across these clowns a few times you can spot them a mile off. Just be very careful until you can spot them.

 

[Duncan_W]

Both the card processors that I have used (sagepay and world pay) have a fraud detection system over and above the standard authorization. This scores each transaction as to how "safe" it seems to be from a fraud perspective.

I wouldn't say it is foolproof, but I can't remember ever having a fraudulent transaction that wasn't flagged by this system.

Also, as someone else said, usually fraudulent transactions can be spotted mile off, as they are usually very out of the ordinary.

If in doubt, contact the customer. They will rarely take offense if they are genuine.