We work hard to protect you from fraud, but every online transaction still carries some risk. To help minimise the risk to your business, you should take a proactive approach by reviewing all sales for signs that something might not be right.
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Is it a high-risk address like a vacant property, a hotel or in a country known for fraud?Have you received multiple orders to the same address within a short period of time?Is the customer requesting same day, overnight or rush shipping despite high costs?Has the customer asked to change the shipping address after payment?
Is it a larger than average order from a new customer?Has the same customer (name, email, phone or address) placed a lot of orders in a short time?Is it a bulk order? (For example, 10 mobiles or 30 pairs of jeans.)Have you received an unusually large number of international orders lately?
Have you received claims or chargebacks from this customer before?Does the email address look suspicious, like knh$$yro123456@gmail.com?Are your emails to the customer undeliverable?Have you received a lot of orders at odd hours (like 3am)?
To help keep your business safe:Always use your own shipping account, not one a customer requests or recommends.Keep lists of customers – one whitelist (good history of payments) and one blacklist (for when fraudulent payments have been received). Keep their names, email addresses, phone numbers, IP addresses and shipping addresses of customers on these lists and cross-reference them on future payments you receive.Set limits for the number and value of purchases you’ll accept from one customer or address per day, week or month.
If the payment is unauthorised, the account holder will usually notice and report the problem quickly.
Call or email the customer and ask a few questions to make sure everything checks out.
If you’re uncomfortable with the order, you don’t need to fulfil it. Simply refund the transaction through PayPal.
When you get paid with PayPal, your eligible sales can be protected against unauthorised payments. You should still work to identify fraudulent transactions but if one slips through, we’ve got your back.
The buyer asks you to use their shipping account because they can get a discount.
Why? When you use the buyer’s account, they can reroute the order to another address without your knowledge and then claim they never received it. Because you don’t have details, the transaction is not eligible for Seller Protection.
The buyer places an order and gives an incorrect or fake shipping address.
Why? When the package can’t be delivered, the buyer contacts the shipper and corrects the address. They receive their order, but still claim they never did. Because of the reroute, you don’t have sufficient proof to meet the requirements of Seller Protection.
You receive an order and your customer “accidentally” sends you more payment than is due and asks you to wire them the difference. Alternatively, they’ll ask you to wire shipping fees to their preferred shipper for a discount.
Why? It’s likely an unauthorised payment. If you wire them or the potentially bogus shipper money, it can’t be recovered.
Simplified PCI compliance helps you meet your obligations and keep your customers’ financial data secure.