Essay heading: Fraud
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April 12, 1998
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Express shipping, ordering many items, and ordering the latest games (instead of reference or educational software) all reduce the likelihood that we'll accept the order. The case is similar for U.S. cards when the goods are shipped to an address other than the card's billing address.
If we guess wrong and ship an order that turns out to be fraudulent - we usually find out months later - we get a "chargeback," meaning that the amount we received for the order is taken back from us...
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If we guess wrong the other way, refusing to ship a legitimate order, we risk alienating potential customers. My company manages to keep its chargbacks very low, but it's frustrating to be in this situation where there is no way to avoid doing the wrong thing from time to time. There are commercial fraud-screening services that filter credit-card transactions automatically, applying these and other checks, but they are not perfect...
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