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| Author |
Message |
| 11 new of 32 responses total. |
devnull
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response 22 of 32:
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Dec 13 04:05 UTC 2000 |
I suspect grex will be less vulnerable to fraud than a company selling
items of significant value. Effectively, a chargeback on a membership
doesn'st mean that $60 worth of goods have been lost.
(I'm talking here about fraud with individuals claiming to want to pay
money and then managing to not pay; I'm not talking aobut companies that
give yout merchant accounts that are shoddily run.)
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drew
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response 23 of 32:
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Dec 13 20:10 UTC 2000 |
But hundreds of sequential denials that cost *grex* the per-transaction fee
anyway?
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dpc
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response 24 of 32:
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Dec 14 20:28 UTC 2000 |
I'm really glad we're set up with PayPal!!
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devnull
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response 25 of 32:
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Dec 14 21:39 UTC 2000 |
Re #23: That's a completely different problem than whether you have a paper
trail of signatures to authorize charges. That's picking a merchant
account vendor that's shady.
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gull
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response 26 of 32:
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Dec 15 19:50 UTC 2000 |
Re #25: The impression I got from the article is that the treatment we got
isn't particularly "shady", it's par for the course for internet merchants.
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devnull
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response 27 of 32:
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Dec 16 07:47 UTC 2000 |
#18 talks about chargebacks. chargebacks happen when a charge is successfully
applied to a card, and then the cardholder sees the statement and tells
the credit card company that they did not authorize that charge. that's
quite different than the problems grex has been running into, where the
processing companies are charging fees for invalid card numbers.
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gull
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response 28 of 32:
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Dec 17 03:32 UTC 2000 |
Yes. The article did mention fee problems, as well, though.
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krj
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response 29 of 32:
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Dec 17 19:35 UTC 2000 |
resp:21 :: the motd still says that credit card processing
is temporarily down, this should be updated.
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aruba
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response 30 of 32:
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Dec 18 04:26 UTC 2000 |
Fixed.
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janc
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response 31 of 32:
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Dec 18 05:32 UTC 2000 |
The way credit cards work on-line (usually) is that two transactions are done.
When you submit an order, an "Authorization" will be done. The authorixation
checks if the card number is valid, and possibly does some other checks, like
seeing of you gave the correct billing address. The other checks are of
somewhat limited use because they only work for US credit cards, so many sites
don't do them.
When you order is shipped there would be a second transaction, actually
billing the card for the money. It's general considered proper not to do this
until the order is shipped.
What was happening to Grex was that we were getting floods of orders submitted
with various (randomly generated?) credit card numbers. Each such order
triggered an authorization, for which we were charged some modest amount.
Most all of these numbers were invalid. Most of the numbers were invalid,
and any others were obvious bogus orders, so we didn't charge any cards
anything, but we did pay hundreds of dollars of authorization fees, so some
dufus somewhere could go trawling for "good" credit card numbers.
We wanted to change things so when an order is submitted, they don't
authorize it with the credit card company. That doesn't happen until one
of our people looks at the order and approves it. Simple enough, and it
would have allowed us to filter out all these bum orders. However, the
company we were working with couldn't do that (more dufuses).
We need to look for an arrangement that works better for us.
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prp
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response 32 of 32:
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Feb 7 16:49 UTC 2001 |
Re 16 mdw:
At one point PayPal did verify account holder addresses. They mailed a
verification number and you typed it into their web-site. They don't do that
any more. Now they verify bank accounts. They deposit money into your account
and you type the amount into their web-site. This was and is optional on
the part of the account holder.
In any case the address that comes with the message to the treasure is just
a shipping address and never verified by PayPal.
Re Online v. Bricks and Mortar:
The same problem, lack of a signature occurs for telephone/mail orders. For
most companies, UPS gets a signature. But that does not happen for Grex
memberships.
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