A way to prevent CC fraud using automated phone verification?
 

I signed up for an online service recently and they had the text below on the page right after my card was authorized. I just had to call in to the automated system (from the number on file with my CC) and type in my order number, then the order was instantly authorized. Do you think this would work in adult, or is it too hard or too much of a hassle for the average adult site customer?

Because this is your first purchase with us using this credit card, we require that you call the following toll-free phone number from the phone number on file with your credit card company in order to activate your card:

Please call: 800-555-5555
From: 212-955-5555 (My phone number was listed here)
You will need to specify this order number: 0205000698088

For your convenience we have also emailed you these instructions at [email protected].

Note: you only need to do this once per credit card.

Why do you require this, and is there any way around it?

Here is the why:

Why we ask you to call in order to activate your credit card

For your protection, we require that you activate your credit card by calling our toll-free activation line from the phone number that your credit card company has on file for you. This enables us to verify that the use of the card is authorized. You will only need to do this the first time the card is used.

We don't like this any more than you do. Unfortunately, we have had to implement this step to deter the use of fraudulent credit card numbers. If someone steals a credit card, that person is able to use it almost anonymously on the Internet. In order to prevent that from happening, we felt it was necessary to put these protective measures in place. Again, we wish it were not required.

But I cannot call the activation line from that telephone number!
If you are unable to call from the number that your credit card company has on file for you, please let us know. Remember to include your purchase information in your email. We will do what we can to gain approval from the credit card company.

You will bring down the chargebacks 1% but propably loose 5% of the customers because of lazyness...Not worth it in my opinion...

Probably true. Maybe it would be a good option for people in danger of losing their merchant account for fraud. I wonder if the credit card processors would eventually offer this type of authorization. It seems simple enough to implement.

I think they'd still be able to use the excuse *My son or my friend called in from my house*


Just my :2 cents:

Who gave them your phone number?

Unless it comes from the credit card company, it will not stop fraud. It may stop someone logging on four three months and then charging it back if he knows you have his phone number.

But think about it would you give your phone number to a company attached to a porn site? If you were not in the adult business.

There has to be a way that the CC Processor asks for a verification number, this is done from a different site and whne it is given the second site verifies the transaction. The verification number is not kept with the card number.

It is a great idea and if you use a 1-800-# it could fly, but many may think it is a hassle and go else where, as it is a hassle or they don't use it cause they were going to charge back any way.

If charge backs are killing your biz, then it could be the ticket from saving your biz from going under.:thumbsup

I think, that this verification should be used for customers from countries, which are banned now because of CC fraudusing. It can make the market bigger.

They knew what phone number my credit card billing was linked to somehow. I don't know how - I guess they can grab that information from the credit card company during authorization.

To verify the charge, you had to call their toll free number from the actual phone number that was on file with the credit card company. It checked what number I was calling from and, after I entered the order code, it approved me.

Then if it does sthat it seems an excellent system but not for adult. I would be terrified I would get a telephone sales girl on the line trying to sell me Dildos or Lube. Hang on that could have possibilities.:Graucho

never fly.. you will loose way too many sales... while it does prevent a ton of fraud. We have seen fraudulent users don't want any verification systems at all... We had a fax back system in place for a while that stopped 95% of our fraud. First time credit cards had to fax back an authorization form with their signature on it. That gave us legal recourse as we had their signature (unlike normal online transaction where you are just SOL). However we had a huge drop off in sales. Now we only use it on overseas cards and suspected fraud.

Us phone sex companies aren't protected when people call into us... it's no different for this I bet. Sounds like a GOOD deterent to the average fraudulent consumer. They'd think twice before a chargeback. In the old days some phone sex companies would get recorded voices on file to play them back to prove a call was made. lol!

Brad

And the wav files save tens of millions in chargebacks

Guys, people doing credit card have access to change the phone number and address listed at the credit card company.... this wont stop anything.

you'll never pay for shiet over the phone like that once you watch Punch Drunk Love.

imagine now people cannot only sell your email but your phone number too (targetted phone numbers of people who like trannys)

Some of this I find hard to belive.

First off, by simply signing up on an online form, and giving your CC #, Exp date. There is no way that merchant or company has access to your phone #. I have heard of it once, if you use Equifax or something like that in the back end with there fraud controls, but i doubt it. Most of the time, all any merchant can check on is if the billing address matches, i.e. Zip code, and the numbers of there address, 1234 west street, so if the zip and 1234 match, it's a yes. also, cvv2..

now if it's trick, they are asking ppl for there phone # on the billing form, and then having them call back a 800 #, which can tell if the person is calling from the same # as they put on the form..

too much trouble in my opinion. Best way is that new verified with visa thing. Which after you signup with your bank, visa. It will give you a password just to use with online transactions, the merchant nevers sees it, and it's supposed to be almost chargeback proof.