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Security against Fraudulent Charges? 
 
WadeT
Jr. Member
 
Total Posts:  1
Joined:  2009-06-01
 

We don’t currently use Magento, but are looking to switch. I’m curious if anyone has ran into the issue below when using Magento?

The problem we run into are fraudulent charges from stolen credit card #’s. This is a problem right now, because someone can hide behind the anonymity of the web, use a fake ID, make a purchase on someone else’s card, and then immediately download product. After the stolen cardholder sees the charge, he notifies his CC company and we get a “chargeback” (the purchase $ is pulled from our account). So the end result is that the customer steals a product, because the download is already in their hands, and we get $0 after the chargeback.

Are there any security measures in place that can keep this from happening?

 
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3Dmerchant
Jr. Member
 
Total Posts:  6
Joined:  2009-09-17
FL
 

This is largely controlled by your gateway set up.  By requiring the CVV code match, you eliminate a huge percentage of potential fraud. This is because most fake cards cannot match the CVV to the card number. This is also a requirement to defend your company in chargeback situations. For extra protection, you can also do an AVS match, but this is not recommended to be “required” if you get a lot of international orders. That’s a much longer answer about what you can do.  As I said though, CVV match rules when you want to protect your company.

Christine

<a href="http://www.3dmerchant.com">Merchant Services and PCI Compliance Consultants</a>
 
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