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What exactly is a "fraudulent order" anyway? Someone has a credit card, pays you and you send the product. Where is the fraud? Isn't it external to the compan
by AsymetricCom 13y ago
What exactly is a "fraudulent order" anyway? Someone has a credit card, pays you and you send the product. Where is the fraud? Isn't it external to the company or service? If someone steals a credit card and makes an online purchase, isn't that the responsibility of the card company in securing its account proxy more fully?
- stephenlambe 13y agoE-commerce fraud takes many forms. Three main types of fraud impact merchants: payment fraud, new account fraud and account takeover. We described all three recently at Sift in a blog post: http://ow.ly/oPrS2 http://ow.ly/oPrS2. In the stolen card scenario you describe (a type of payment fraud), the e-commerce merchant is actually liable. In other words, if that card is reported stolen by the cardholder after the goods are shipped out, the merchant loses the revenue. This is b/c for online credit card transactions, they are categorized as "card not present" transactions, since the merchant can't be as certain the actual cardholder made the purchase. If the transaction had occurred in a physical store, the card company would be liable.