SCAMMED - Reward

[Teamcasa]

Credit Card Fraud sucks. It's designed to. The Banks only care about the card holder, not the merchant. Verification only says the account has sufficient credit available and if it has been closed or stolen - if reported. The problem is many card numbers are stolen and used until the credit line is used up or the card holder reports it.

Merchants that take cards over the telephone or on-line get hit the hardest because they never have the CIF (card in fist). An as such, they pay high processing costs.

We (as a car dealer) never take card purchases without the physical card but even then, we get hit from time to time.

An online merchant should always ask for the security code on the back, and verify the issuing bank by searching here Search BIN Database

In addition, I would ask for a fax copy of the card (front and back) if the amount was north of $500.

 

[frankc420]

There are a couple things I recommend (this is directed to all online stores):

1) Get an online CC gateway account and set it to AUTH only to verify the funds are there. If you adjust the total to reflect different shipping costs, so be it, you are atleast authorized to the amount on your first attempt.

2) Most online merchants have fraud detectors and rating systems. The one I resell for (CDG Commerce) has a system like this. They even have phone verification systems. Maxmind IMO is a great system for helping detect fraud. It does like someone said earlier and does IP checks against the city/state of the CC. If the mileage is way off, it gives it a score and if the score is above a certain threshold it marks it.

 

[mike_s]

We (as a car dealer) never take card purchases without the physical card but even then, we get hit from time to time.

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you sell many cars on credit card? (maybe in LA you do). or more for just parts sales?


but aren't the processing fees crazy for that?

I asked at a car dealer once about putting a car purchase on the card. They said sure, but they'd have to add charges for the transaction fee. I didn't really care about paying the extra money. so wrote them a check.

But I imagine that in LA, you might have more people that don't care about it if they have to pay that fee. (yes I'm sterotyping, but having lived in LA, I've seen it...)

 

[PhilEllis]

Card numbers can be stored as long as necessary, however they do need to be kept safe and they are a liability. Home Depot, for example, stores millions of credit cards because they're required in order to process customer refunds for returned goods.

However in your case, you're apparently using an outside vendor for credit card processing, which relives you of the responsibility of storing the card data, but also removes your ability to access it when necessary.

Terry

I have zero access to credit card numbers. When an order is processed online on our website, we receive a 64 digit capture code from the automated clearing house, the central processing facility for almost all credit card, wire transfer, and virtual check transactions in North America. Only the 64 digit number remains connected to the card holders account. We can only capture with this code. Immediately after the capture occurs, we receive another 64 digit refund code that is stored on our order database for 36 calendar days. After that, refunds require that we get the customers card number and we also are charged a credit card processing fee for those "late" refunds.

Home Depot, and other large big-box stores is a PCI DSS compliant company. They have a contract with an outside PCI auditor who does they yearly compliance audit. Only tens of millions of dollars annually would justify a vendor doing self certification.

Phil Ellis
www.divesports.com

 

[Teamcasa]

you sell many cars on credit card? (maybe in LA you do). or more for just parts sales?

Sometimes, but only for the full amount of the purchase. By law (but many do it anyway) we are not allowed to take a credit card for the down payment. (It deceives the primary lender as they demanded an X amount down payment and it is supposed to be unencumbered cash, not credit from another lender.)

Adding extra money on for the fees (a percentage of the sale) is a violation of our merchant agreement, but many do it anyway.

Most of our credit card sales are for service and parts. Our disputed transactions are so infrequent that we can demand the lowest transaction fee fro our banks and the competition for our (cc processing) business is fierce.

 

[xariatay]

It sucks that I can't buy things from some online merchants because I am a Singaporean. because of thieves & robbers!!!

The Banks only care about the card holder, not the merchant.

This is not true in Singapore. This current case is hot in the news here: The card holder is still liable to pay for the "goods" bought using her stolen cards because she didn't immediately realise that her card was stolen. Her cards were used to buy luxury watches.
Some banks are better, some are worse... Generally everyone/ every business if for themselves, isn't it?

We have cases here that the card holders have to pay back instalments to the bank for spa packages that they can no longer use because the companies are closed because they have paid the companies in full But the authorities are working to end this practise.

 

[deepstops]

Sometimes, but only for the full amount of the purchase. By law (but many do it anyway) we are not allowed to take a credit card for the down payment. (It deceives the primary lender as they demanded an X amount down payment and it is supposed to be unencumbered cash, not credit from another lender.)

Adding extra money on for the fees (a percentage of the sale) is a violation of our merchant agreement, but many do it anyway.

Most of our credit card sales are for service and parts. Our disputed transactions are so infrequent that we can demand the lowest transaction fee fro our banks and the competition for our (cc processing) business is fierce.

Wow, I think I've done this the last few times I bought a car, never questioned the practice.