Anyone Have Credit Card Fraud or Chargeback Problems?

I’m doing some research and I wanted to find out if you or your company has problems with credit card fraud and/or chargebacks. If so, how do you combat them?

You can post a comment or drop me an email at rob -at- softwarebyrob dot com.

I got the information I need; thanks to everyone who responded!

[tags]credit card fraud, chargebacks, online fraud[/tags]

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#1 Oli on 10.30.07 at 9:08 pm

Joel posted about this earlier this year:

…and the article from a few days earlier is this one:

– Oli

#2 Justin Etheredge on 10.30.07 at 9:45 pm

Yeah, the company I work for has some issues with chargebacks from customers. We are also a software company and so it is hard when a customer charges the card back because they already have the software and we can’t get it back. Our solution was to issue limited time licenses (like 90 days) and then after about 60 or so days automatically issue an unlimited license if the customer has not charged back. We also have a version of our software that comes with source, and in that version there isn’t really a whole lot you can do.

#3 Tom Mahoney on 10.31.07 at 6:58 am

Might want to have a look at and

Caveate – they are both my sites.

Tom Mahoney, Director
Merchant911, LLC

#4 JD Conley on 10.31.07 at 12:28 pm

I (in a past life) had issues with chargebacks and fraud. In fact, we lost our AMEX merchant account due to it — the ratio of fraud to real transactions was too high. They were using our site to test the validity of stolen cards. The key is to use all the protection methods available to you through the merchant account. CVC, address, etc. Also, use delay capture to your advantage. If you do captures after a week it’s much less likely you’ll get a chargeback, but rather will just have the delayed capture canceled.

#5 Robin Mata on 11.01.07 at 2:48 pm

Credit card..none, however, I’ve seen may cases of online banking fraud by means of identity theft. Credentials stolen, OTP security bypassed… money is gone. What We’ve done is implementing MiReBE (E-Banking Risk Mitigation): a set of best practices to follow specially in those PCs that do e-banking in small business

#6 Brett Bim on 11.02.07 at 8:51 am

At my previous company (third party bill payment), we used what we called velocity validation that limited payments to user accounts or payments by the same card. We’d set limits like 3 payments in 5 days or 5 payments in 30 days to combat the usage of stolen cards on our system. Using ECV/CVV2 and zip code validation helps as well.