How do U.S. E-retailors securely handle International Online credit card orders? Best answer on the web
Author:
mike
07 30th, 2010 in
xn--00t609f.com
edit
Catch-22 Problem -
Background: Website has Merchant Account from Merchant Account Provider (Such as Card Services International http://www.cardservice.com/) No Address Verification is provided for International orders (outside of U.S.) MAP says "process such orders at your own risk". For Address Verification the website must contact the website International Customer and ask for their credit card's issuing bank (not a very fast process). Problem: Issuing bank will not provide E-retailor/Website with address verifications (multiple casses like this) as they feel that this is a security breach. Issuing Bank will only talk to and confirm/deny customer addresses with another bank, and are even then reluctant to do so over the phone. Question: Accepting International orders without address verification is risky. How do other U.S. E-retailors handle International On-Line Credit Card Orders? Do all MAP's put the burden of address verification for International orders on the E-retailor? Idea: I read in another answer on this site about Echo, Inc. http://www.echo-inc.com which provides Merchant Services but is actually a bank. Would this make a difference in terms of getting address verification for International orders. Fustration: This website can not be the only E-retailor that has this problem, hence the desire to know what others are doing to securely accept International On-line credit card orders. It does not seem that the Merchant Account Providers give any support beyond confirming that the credit card in question for a specific transaction has funds available from the issuing bank.
Please investigate creatively, provide specific examples if possible and I will happily tip appropriately.
Thanks
Thank you so much for your nice note, rating, and tip - I really appreciate them all and I'm happy to hear I found a solution that worked for you. In my answer, I focused on sellers who had special requirements for international sales, but you know, there are many sellers who ship worldwide and treat all orders equally by just keeping alert and using common sense. Again, good luck and thank you.
Sincerely,
hummer
There are no magic bullets out there, merchants always take a risk transacting credit cards (no matter from home or abroad). Even though there are steps you can take to lessen the risk, there is no single tool to use - check several sources plus use your instincts and common sense.
The first thing to do is to join Merchant 911:
"Our mission:
*To give merchants the information they need to help themselves protect against on-line fraud. *To bring pressure on the credit card industry to change policies, procedures, and regulations so that THEY are responsible for their mistakes and poor fraud screening. *To act as a clearing house for merchants to report fraud and educate themselves about on-line payment related problems and issues." http://www.merchant911.org/
Merchant911 maintains a wealth of information on its website regarding credit card fraud and prevention, but it also has a Credit Card Verification Web Service (BETA) which members can use for free. After you become a member, you not only will have access to all of the info and the forum, but you'll also (if you want to) receive fraud alerts by email.
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There are three popular requirements that many merchants use for international customers: 1) American Express is the only credit card company which verifies international addresses and many merchants will only accept AMEX from international customers. 2) For other credit cards, merchants often require that the billing and mailing addresses match exactly. 3) It is popular to ask for a faxed copy of both sides of the credit card on a signed authorization form.
Following are policies from eleven online stores:
1) "There are a number of ways for us to obtain acceptance of your International Credit Card .... Any one of these methods will suffice ... - Have your Issuing Bank call us in the USA Toll Free.
- Have your Issuing Bank give us their USA or Canadian Toll Free Phone Number.
- You may send us with a "Photo ID" with your address"
http://www.catalogstuff.com/international.html
2) To use a non-US credit card, you must provide Proof of Identity:
"After placing your order through our online shopping cart, please fax, email or mail a copy of your: - credit card (front and back),
- state-issued ID, Driver's License or Passport, and
- your signature"
http://www.infinitefetish.net/nadir_faqs/international_1.html#08241294
3) What are the requirements for international orders?:
"For all international credit card orders over $100, you must fill out an authorization form by hand, including a photocopy of an official picture ID, as well as a photocopy of both the back and front sides of your credit card. International money orders and PayPal orders from outside the U.S. are not required to provide the above photocopies. For more information regarding international orders click here." http://www.dvd-supply.com/payment-info.html
4) ...the following guidelines be observed when placing your order:
"1. International orders over $100.00 must select Express shipping to ensure all orders can be tracked and insured. 2. Orders over $100.00 must also use American Express whenever possible to facilitate the use of online address verification systems. 3. Orders shipped using Global Priority Mail are not insured and require no signature confirmation. 4. Many International Orders may be required to provide additional security information by filling in an Order Authorization Form ...and faxing it back to us ... or sending via email. 5. A recent copy of a current credit card statement should be included with this form to allow us to contact the issuing bank to verify the billing address. 6. All orders can only be processed and shipped to the billing address as verified by the issuing bank." http://www.oempcworld.com/generic53.html
5) International Ordering Guidelines:
"Due to the high amount of credit card fraud, up to 25% of all international orders, we manually screen all International orders received. Only American Express provides us with the ability to verify International credit cards. For this reason we highly recommend you use this card if it is available. International orders placed with a credit card require manual processing to ensure their validity. Most International orders will be required to provide additional security information by filling out the authorization form. A recent copy of a current credit card statement should be included with this form to allow us to contact the issuing bank to verify the billing address." http://www.4allmemory.com/index.cfm?fuseaction=links.intlorders
6) New Shipping Policy International Orders:
"We only ship to the US, its possessions, and the following countries:
Canada, UK, and Australia.
Sorry, but due to the high incident of credit card fraud using international orders, no exceptions will be made. International Credit Card orders are limited to 50.00 or less."
http://www.rusticraggedys.com/ordering.htm
7) We ... welcome our friends from around the world..
- Canada, United Kingdom and Australia:
"We can ship almost as easily as to USA locations. We normally have to call your bank to verify your credit card billing address and name. - All other countries: Verification of the validity of credit cards is much more difficult. We can not process other overseas order until we receive one of the following: 1- Scanned images of both sides of credit card sent via attachments to email, OR 2- Scanned images of both sides of credit card sent via fax."
http://www.replicaweaponry.com/foreignorders.html
8) On all International Orders we require the following:
"Faxed or scanned copy of credit card and photo identification, i.e. drivers license or passport." https://id252.securedata.net/nailsplus/shippingpolicy.html
9) For countries outside of the United States or Canada.:
"Pay online with your credit card:
Step 1) Check to see if we ship to your country.
Step 2) Use your billing address for your shipping address.
Step 3) Enter your billing address exactly as your bank has it on file.
We are required to phone your bank and verify the accuracy of the billing address.
Note: If these steps are not followed exactly, your order will not be processed even if you get an approval code while checking out." http://www.dyjewels.com/cs_int.shtml
10) International Orders:
"We do accept orders from International customers. However due to an alarming increase in use of stolen credit cards, all new international customers are subject to a credit verification process. This process may take up to 4 days to complete. We have to communicate with your bank to make sure that the credit card is being used by the original card holder. Some banks take longer than others to respond. If you are in a hurry to get the order shipped then you can fax us a legible copy of your credit card, front and back, with a copy of some identification." http://acoustics.hypermart.net/help.htm
11) Payment Options:
"Credit Cards - For all credit card orders, an Credit Card Authorization Form must be filled out and faxed back to us. Download a copy of Credit Card Authorization Form by clicking on one of the links below: >Credit Card Authorization Form.pdf - (Requires Adobe Acrobat Reader)
>Credit Card Authorization Form.doc - (Requires Microsoft Word)"
http://www.sharpdiver.com/international_orders.html
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Some things you can do manually on your own to try and verify a credit card in regards to international orders:
BIN CHECK:
Type in the first six digits (BIN) of the credit card number to find out the issuing bank. Provides a way to see if the issuing bank is in the same country as that provided by the card holder.: http://www.testtown.net/cardinfo/
CALL ISSUING BANK:
Request the customer's phone number that is attached to the credit card, then validate it and the billing address by calling the issuing bank. This may require asking the customer to call their bank first to authorize them to give you what you need.
FAX AUTHORIZATION:
Fax the customer an authorization form that he can fill out and sign.
Have him fax it back to you with copies of both the front and back of the credit card.
IP ADDRESS LOCATION:
Match up the billing address of the card holder with the customer's actual physical location.
EMAIL ACCOUNTS:
Insist on a local email address (not a web-based free account such as Hotmail).
ANONYMOUS PROXIES:
These hide the true location of the client - use caution.
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Additional Links:
Match a Telephone Area Code to a Postal Zip:
http://nt.jcsm.com/ziproundacx.asp
Reverse Phonebooks, Reverse Email and Cell Phone Lookup Tools:
http://www.freeality.com/finde.htm
Visa (& M/C) Merchant Verification Service: 800-847-2750
American Express verification of billing address: 1-800-528-2121
CARD COPS:
http://www.cardcops.com/
COMBAT FRAUD:
http://www.combatfraud.org/main.html
EARLY WARNING SCHEME:
http://www.early-warning.org.uk/
FRAUD WATCH INTERNATIONAL:
http://www.fraudwatchinternational.com/fraud_news.htm
I hope this helps and I wish you many years of trouble-free online sales. If you have any questions, please post a clarification request before closing/rating my answer.
Thank you and Good Luck!
hummer
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