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Interesting to read about those fraudsters. Really annoying when you're a small business. I remember reading something similar from Gittip[0], and also mentione

Interesting to read about those fraudsters. Really annoying when you're a small business. I remember reading something similar from Gittip[0], and also mentioned on the linked blog post, jsbin[1]. I wonder what other small startups are using to detect / prevent this kind of fraud? Are there any good services in this space? and why won't recurly/stripe et al bundle this in? (or maybe they do, and I just don't know about it...?) [0] http://blog.gittip.com/post/35057426257/stolen-money-on-gittip-part-1/ http://blog.gittip.com/post/35057426257/stolen-money-on-gitt... [1] https://remysharp.com/2015/09/17/jsbin-toxic-part-4 https://remysharp.com/2015/09/17/jsbin-toxic-part-4

huac 11y ago
sift science is in this space and i've heard good vibes, but no hard numbers perhaps stripe/etc doesn't invest in this space for risk or compliance reasons - when chargebacks slip past their filter (and they will), the merchant could claim that responsibility falls with stripe. right now, merchants are (almost?) always responsible for the chargebacks, which is fine for square/etc.
loopbit 11y ago
All I can talk is from my personal experience, but as the founder of a startup that sells physical goods online, we've had no issue with fraudsters. At all. Granted, we are quite small and our volume of sales is not massive (Hey! Small startup with very little funding and mostly bootstrapped here), but still, I was expecting some kind of issue with this by now. Or at least people trying to get stuff for free. For the record, we use Stripe and PayPal for payments, don't know if they do anything on their end.
- bRad389 11y ago
  FYI You're actually more at risk than CandyJapan if you're shipping physical goods based on successful Auth and/or offer a low pricepoint item. Even without catching the uptick in orders, CandyJapan likely would be able to see some chargebacks or fraud advice before the bulk ship date (2x a month I believe). One thing i've learned in my short time in the industry, fraudsters are great at finding weak merchants for card testing and triangulation schemes. What was 4 days worth of work for this fraudster, cost CJ thousands in fees, multiple days. How many late nights have been devoted to cleanups like this? Also, a lot of payment processors are offering complex fraud solutions (ipGeo, proxyPiercing, device fingerprinting, etc) for pennies per Auth. definitely worth asking your processor and your processor's processor for more info. Beats being the lowest common denominator.

huac 11y ago

sift science is in this space and i've heard good vibes, but no hard numbers perhaps stripe/etc doesn't invest in this space for risk or compliance reasons - when chargebacks slip past their filter (and they will), the merchant could claim that responsibility falls with stripe. right now, merchants are (almost?) always responsible for the chargebacks, which is fine for square/etc.

loopbit 11y ago

All I can talk is from my personal experience, but as the founder of a startup that sells physical goods online, we've had no issue with fraudsters. At all. Granted, we are quite small and our volume of sales is not massive (Hey! Small startup with very little funding and mostly bootstrapped here), but still, I was expecting some kind of issue with this by now. Or at least people trying to get stuff for free. For the record, we use Stripe and PayPal for payments, don't know if they do anything on their end.

bRad389 11y ago
FYI You're actually more at risk than CandyJapan if you're shipping physical goods based on successful Auth and/or offer a low pricepoint item. Even without catching the uptick in orders, CandyJapan likely would be able to see some chargebacks or fraud advice before the bulk ship date (2x a month I believe). One thing i've learned in my short time in the industry, fraudsters are great at finding weak merchants for card testing and triangulation schemes. What was 4 days worth of work for this fraudster, cost CJ thousands in fees, multiple days. How many late nights have been devoted to cleanups like this? Also, a lot of payment processors are offering complex fraud solutions (ipGeo, proxyPiercing, device fingerprinting, etc) for pennies per Auth. definitely worth asking your processor and your processor's processor for more info. Beats being the lowest common denominator.