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Reducing Credit Card Fraud

This article requires the free Fraud Filters addon from the addon store.

One of the risks associated with selling online is credit card fraud. Merchants are responsible for all credit card fraud conducted through their website. In most cases, banks can apply charge back fees and debit fraud money from your account without warning.

One of the first thing’s we recommend is selecting a gateway provider with their own anti-fraud technology. We recommend using eWay Rapid 3.1 to accept credit cards as it includes 3D Secure. 3D Secure connects to the users local bank and asks them to enter a unique pin or enter a unique code sent by SMS.

The next thing you can do to help reduce credit card fraud is registering for Maxmind fraud prevention software. This service will help block fraudulent transactions and will assign each order a fraud score and summary.

What does the fraud protection software actually do with an order?

  • Places risky orders on hold to be manually checked
  • Creates a risk score to determine the likelihood of a fraudulent transaction
  • Address checks
  • Email address checking
  • High risk IP address checks
  • Proxy detection

To view the plans for Maxmind go here. Fraud insights starting from USD$25.00 per 5,000 queries is a small price to pay for protection. We suggest the Premium minFraud service (around 1.5cents per transaction).

To configure your fraud protection, simply follow the steps below.

  1. From the Neto dashboard, navigate to Addons and locate Fraud Filters and press Configure.

  1. Add your settings, we’ve outlined some recommended settings below.

    • Enter your Max mind license key
    • Fraud detection software: Maxmind
    • Activate fraud score on hold check: ticked.
    • Enable fraud score check for statement payments: (Optional)
    • Max mind request type: (Premium Service Recommended)
    • Hold order for new customers (Unticked)
    • Put all orders on hold (Unticked)
    • Hold order if grand total greater than: $3000

Important Note: We do not recommend changing the default fraud score settings in this area.

Tip! If you are still unsure, call your merchant facility provider to check the credit card used to process the order has not been reported as stolen since the order was placed. If time allows, wait a day or two before shipping the goods. There is a good chance that the credit card owner will notice fraudulent transactions and report their card as stolen within this time.

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Last Modified: 28/09/2017 Neto Version: 6.6