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Agreed. When I read this it looks like a verification process for a batch of stolen credit cards to see which are still valid and which aren't. Note that the "s

Agreed. When I read this it looks like a verification process for a batch of stolen credit cards to see which are still valid and which aren't. Note that the "successful" transactions may very well be charged back to you at $15 each or more so you want to refund any suspicious payments quickly to avoid going into the negative.

dangrossman 14y ago
You basically have to catch it before the charge is even settled; either within the same business day before your settlement cutoff, or by authorizing without capturing for a day or two so you have time to review. Once the charge is settled, a refund almost never stops someone from charging back the payment -- for whatever reason, when a card is reported stolen, people and banks simply charge back everything unauthorized even if a quick review of the account would show some of the payments were already refunded. You can dispute these chargebacks by providing proof of the previous refund, but you're still out the chargeback fees, and these chargebacks still count against your account -- so they can end up getting you terminated if your CB rate is pushed too high.
- whit537 14y ago
  Thanks, good info. My plan at this point is to whitelist accounts, because I want to try to keep from charging suspicious accounts in the first place.
- robryan 14y ago
  We get these, have seen a case where we refunded but apparently they were going after the currency conversion amount with the chargeback. Do some providers offer longer settlements? Feels like we only get a few hours a lot of the time to void a transaction.
  - dangrossman 14y ago
    You have 1-3 days to capture an amount you previously authorized. You only have so little time because you're authorizing and capturing at the same time. If you need more time to review, decouple them. Some payment gateways also let you decide the settlement cutoff time, so you can set it after business hours.
whit537 14y ago
Informative, thank you both. On this ticket we discussed why Gittip isn't the best system for extracting value from a card: https://github.com/whit537/www.gittip.com/issues/329 https://github.com/whit537/www.gittip.com/issues/329 The desire to verify stolen cards with the added benefit of recovering that waste seems to explain the motive for using Gittip.

dangrossman 14y ago

You basically have to catch it before the charge is even settled; either within the same business day before your settlement cutoff, or by authorizing without capturing for a day or two so you have time to review. Once the charge is settled, a refund almost never stops someone from charging back the payment -- for whatever reason, when a card is reported stolen, people and banks simply charge back everything unauthorized even if a quick review of the account would show some of the payments were already refunded. You can dispute these chargebacks by providing proof of the previous refund, but you're still out the chargeback fees, and these chargebacks still count against your account -- so they can end up getting you terminated if your CB rate is pushed too high.

whit537 14y ago
Thanks, good info. My plan at this point is to whitelist accounts, because I want to try to keep from charging suspicious accounts in the first place.
robryan 14y ago
We get these, have seen a case where we refunded but apparently they were going after the currency conversion amount with the chargeback. Do some providers offer longer settlements? Feels like we only get a few hours a lot of the time to void a transaction.
- dangrossman 14y ago
  You have 1-3 days to capture an amount you previously authorized. You only have so little time because you're authorizing and capturing at the same time. If you need more time to review, decouple them. Some payment gateways also let you decide the settlement cutoff time, so you can set it after business hours.

whit537 14y ago

Informative, thank you both. On this ticket we discussed why Gittip isn't the best system for extracting value from a card: https://github.com/whit537/www.gittip.com/issues/329 https://github.com/whit537/www.gittip.com/issues/329 The desire to verify stolen cards with the added benefit of recovering that waste seems to explain the motive for using Gittip.