Re: UKNM: Re: Credit Card Fraud

[Ken Cowley]

I believe that the situation with on-line clearance is little different to

any 'cardholder not present' transaction (e.g. over the phone).


Cardholder not present = vendor at risk

Cardholder present (and appropriate checks made, e.g. signature verified) =

bank at risk.


Vendors should implement their own check routine whether taking cards

on-line or through, for example, a call centre.


You don't necessarily lose the details when sending to an on-line provider.

Datacash and other component based systems provide an easy route using their

components, as the script calling the component could also stash the details

on the server (where data protection comes in you'd have to check). Netbank

uses a <form action= (a Netbanx server-side script)> but you could have it

target your own cgi which then passes it on - the same route used by portals

to check links clicked before passing over to Amazon, or whatever. Don't

know what Netbanx' position is on this - but if you're really dedicated

you'd spoof the http-referrer so they wouldn't know anyway.


As an aside, where do on-line third party fulfilment companies come in? The

Internet appears to be 'disintermediating' the merchant too, so they just

become the marketing front-end for someone else's warehouse. Anyone any

experience of a fulfilment house taking fraud risk, or offering combined

credit card/fulfilment service including fraud risk?


Also this whole area looks ripe for an insurance based solution, there being

(presumably) enough statistics around for actuaries to get their teeth

into - is there one?



----- Original Message -----

From: Marcus Austin <

marcus [dot] austinfuturenet [dot] co [dot] uk

>

To: <

uk-netmarketingchinwag [dot] com

>

Sent: 15 November 1999 12:43

Subject: RE: UKNM: Re: Credit Card Fraud



> At last someone is starting to listen to what we've been saying for the

> last 12 months. Chargebacks and customer perpetrated fraud is the real

> problem with commerce on the Net, and part of the problem is the credit

> card processing agents and the cc companies. Amongst other things CC

> companies are very slow at passing on stolen card lists and processors

> unintentionally hide a lot of the information that a merchant would find

> useful to check against fraud such as the cc name ie R Branson, multiple

> deliveries to multiple addresses using the same cc details. If i was a

> merchant i'd be asking marbles etc what rights i have against fraud using

> marbles cards, because at the moment it seems to be zero.

>

> I have included some para's from a letter we received recently that might

> help illustrate some of the problems.

>

<snip> 


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