Fraud, need other hosts opinions

J

JerryM

New member
Hello,

I received an order yesterday. The person tried to pay via Google Checkout, Google canceled the order saying the believe it's fraud..

This person then changed their payment method to Offline Check.

Now my question is, Would you try to deposit that check and see if it clears or rip it up?

I've never had something like this happen before. The total is $60.

Thanks for any advice,
Jerry
 
They are here in the US. Google Checkout first said they were going to give them 7 days to update their card information but then canceled the order and said they believe it was fraud.

I also did a search for the address and # provided. The address is a real address BUT the # provided is for a different person and address. The address for the # is 10 blocks away according to google map.
 
That's why the card didn't go through. The idiot prob doesn't have access to his phone so he put his girlfriend's number down. But cc won't go through without the original phone number :p
 
If you have the phone number, pick up the phone and introduce yourself. If nothing else, the customer would appreciate the fraud screeening process.

I've yet to have a customer be upset that I called them to verify that they ordered hosting, and to welcome them to our network. A little bit of PR goes a long way!
 
Quite often a customer will use a friend or family members credit card and use their own phone number when signing up. And of course our payment gateway declines it since the phone number does not match.

I agree with handsonhosting, calling the customer and verifying is definitely your best bet. You definitely do not want to pass up a customer over something like that. If they turn out to be legit, they'll thank you for calling.
 
Thanks for the advice guys. Unfortunately, I can't call right now. I've been without a voice for a week now, so I can only converse online. Waiting for these darn pills to kick in so I get it back. I will see if my partner will call them.

Thanks again,
Jerry
 
Yep, have a wife, girlfriend, friend, neighbour, someone (preferably not a child though). And if you have a partner, then they should definitely be stepping up to the line to make the call.
 
To be honest, we just use MaxMind Minfraud. That way we know instantly if there is a problem with the order.

If you're using WHMCS its free (for 1000 checks a month I think). Highly recommended as an additional fraud check.
 
Actually, phone calls are a good thing even if it is fraud. Sometimes you wind up alerting the real card holder that their identity has been stolen.
 
Another advantage of the phone call is that you can POTENTIALLY turn the defrauded person (should the call prove to be fraud and their info stolen), you have the chance to make a good impression with YOUR company looking out for other clients, and potentially convert them into a client of your own. It's only happened a few times for me, but it's always a good feeling when you can cold call something like that.

Also, VPSSpeed - we too use the MaxMind screening and it does wonders for helping to weed out the noticeable fraudsters. Doesn't catch everyone, but gives you a pretty good headsup on things. We had tried using the DialVerify module last year I think it was, but it resulted in too many failed transactions and lost sales as the program wasn't 100% right for whatever reason. A little bit of sweeping manually does wonders though!
 
What's the turnaround time for a check to bounce (if it did)? Or would you just wait to the check to fully clear before allowing them to start hosting?
 
For us, the check must clear. Usually 4-7 days is the clearing time - depends on your bank.

We also wait for PAYPAL to clear, should a user be using a check method in PayPal (takes 3-7 days according to PayPal's TOS).
 
As others have suggested, try to use some other method to make sure the order is legitimate.

One thing I will like to say (that may not be directly related to OP) is that Payment processors and fraud checking sites sometimes do mistakes in checking fraud. (Google CO 2CO and especially, MaxMind. )

I have seen so many times MixMind marking an order Fraud even if its legit. (They have their own reasons of doing that)

So, one should always try get in contact with the user and find out why the order was marked as fraud.
 
Check it out! Investigating the possible fraud can, as people have already said, make you look like a pretty smart company. It can also be the good start to a long term relationship :)

How did this turn out?
 
Hello EpicTech,

In the end, they never would answer the phone or return the calls and they never sent the check so....
 
I'd just wait for the check to clear, it's how we normally work it. We have MaxMind enabled as well, but it's mislabeled about 50 orders in the last two months, and now we have it only warning for threats of 7.5 or above, basically if using an open proxy. Even then we normally accept the order because we speak to the client and verify the details, have never had an issue, works every time.
 
Hello,
I would not go strictly by Google Checkout's fraud check. You should also be running your own via MaxMind or similar.​
 
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