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by cpncrunch 3385 days ago
>2% is really high. A lot of non-Paypal CC payment processors will flag your account when chargebacks exceed 1%.

Yes, 2% is insanely high. I do about 2k/month through paypal and haven't had a chargeback in years. I think the last one was a few years ago, and that was just because a customer had their credit card stolen and just charged back all transactions they didn't recognise.
1 comments
kweks 3385 days ago
Depends on the product. I've seen businesses run at 10%, and others at 0%.

Until you have a massive, public facing product that sells internationally across many facets of customer - you've probably never experienced the hell of CB management.

Typically, you'll get: - Stolen cards (obvious ones) - Stolen cards (very insidious ones - all customer information, proxies that match the customer address, etc). Typically the only way to catch these guys is to have a hugely expensive 'express delivery' option, and manually filter each order that comes through on this option. - Dumb thieves (chargeback the day after delivery) - Smarter thieves (chargeback the day after posting) - Horrible people (chargeback months later) - Idiots (Unable to use a product, so chargeback) - Assholes (Weaponise chargebacks to blackmail you)

Words to anyone struggling to fight CBs / fraud: - Use machine learning, ie SiftScience (or similar) to screen all transactions. - If you use Stripe, use their Radar feature. - If an order gets one flag, place it into a review queue, and manually process it 24 - 72 hours later. Emailing a customer smokes out the majority of fraud. - If an order gets two flags - blackhole the order (refund the card, if charged)

The biggest thing is making your fraud processes opaque to scammers. If your site returns true/false responses, they'll just keep hammering until they find a combo of cards / proxies / etc that works. The only way around it is to shadow-ban: - Send blackholed orders to an approval page. - Send blackholed orders an approval email. Train your customer service to know which orders were banned, which weren't.

If scammers have to wait 1 - 4 weeks to know if their order worked or not.. they will move onto easier targets.

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Dylan16807 3385 days ago
> The only way around it is to shadow-ban: - Send blackholed orders to an approval page. - Send blackholed orders an approval email. Train your customer service to know which orders were banned, which weren't.

I wonder if this is why a friend of mine had to call in over and over about an order that kept disappearing.

That or the company really didn't want to fulfill their black friday sales.

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cpncrunch 3384 days ago
>Depends on the product. I've seen businesses run at 10%, and others at 0%.

Which products have 10%?

>Typically, you'll get: - Stolen cards (obvious ones) - Stolen cards

Is this with Paypal? Paypal does a hell of a lot of work to prevent stolen cards being used. I've never had a single case of this happening since I moved to Paypal. With Worldpay I did have the occasional one.

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devicenull 3384 days ago
> The only way around it is to shadow-ban: - Send blackholed orders to an approval page. - Send blackholed orders an approval email. Train your customer service to know which orders were banned, which weren't.

I don't use woot anymore because they did this to me... and apparently had no process for removing it.

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