How to prevent credit card fraud on virtuemart ecommerce website

[narpinder]

Hi Guys,

I use joomla 3.9.0 and virtuemart 3.4.2. I use paypal pro for payment so if a user uses paypal login then transaction is covered under seller protection but if a user uses their credit card directly on the checkout(this doesnt require user to have a paypal account and also similar to paypal guest checkout), paypal doesnt cover it under seller protection whether its paypal guest checkout and direct credit card usage.

I run a very small part-time online business and in the last 6 months we had quite a few chargeback via financial institutes on behalf of the card holder(mainly unauthorised transaction). Paypal doesnt seem to have a solution for this issue. I was reading on some products that offer protection against credit card frauds like 3D secure service. I have found some banks in australia offers that and also there are some plugins available online for australia. Does anyone be able to explain and advise what to take or consider in terms of saving the business from fraud transactions?

What other measures can be put in place on the checkout page (someone suggested to add field called "Bank name")? Not sure having bank name would help as i dont know if they can advise if its stolen card or not.

Will really appreciate if someone can share their experience or knowledge and assist.

website - petslovezone.com.au

Regards
Narpinder

[jenkinhill]

There are always likely to be some fraudulent transactions in an on-line store. I have found that Stripe offers a good level of security, as all cards are checked on-the-fly as the card data is being entered. They are also helpful when contacted with a query. In my opinion PayPal tends to side always with the purchaser in making chargebacks.

Stripe in Australia is https://stripe.com/au  and there are plugins available for VirtueMart.

[narpinder]

Thank you Kelvyn. Appreciate your quick reply and will definitely explore the link.

[AH]

You should check that your payment service provider offers (PSP):

AVS - Address verification system - this checks aspects of the billing address with data held by the company that issued the payment card
3d secure is not a function of the PSP - it is a feature that may or may not be supported by the issuer of the payment card

You could ship to the billing address - AVS helps to reduce fraud if this is in place - but this may restrict your sales.

You cannot avoid chargebacks altogether, especially with Cardholder Not Present (CNP) transactions  - ecommerce/telephone payments etc

The rules regarding resolution of chargebacks are pretty complex

However the resolution is based on the weakest element in the change between merchant and issuer

As the issuers have pretty robust fraud systems in place - the merchants normally lose out because CNP transactions are always going to be the weakest part of the chain

If you had a store that accepted CHIP and PIN card payments, you would be in a stronger position for these transaction - but e-commerce merchants usually take the chargeback hit on CNP

[Typhoon365]

Fyi. AVS not supported on Australian issued credit cards as far as I know.

3D secure seems the best option for protection but also need to consider if it affects drop-out rates during check-out due to the additional verification step.

Also be aware of "eBay Triangulation Fraud", we find a quite a few fraudulent orders that we have traced back to this scheme, do a google search to read up on it. Depending on the products you are selling, sometimes worth searching eBay if there is a seller with reasonably short selling history that is selling the same items at a reduced price with free shipping and check if they recently sold the same item. Usually target items around $100 to $200 mark.

[Milbo]

Try the new eWay, which is as test release already in the RC of the core. I had a hard flu the last weeks and that delayed the official release. The plugin is well tested by eWay, so you can use it like official released.