New on LowEndTalk? Please Register and read our Community Rules.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
Increased Fraud on Stripe
randvegeta
Member, Host Rep
in General
Anyone else seeing an uptick in fraud activity with payments being made by Stripe? It's becoming quite expensive. Each charge-backs costs HK$85 in charge-back fees, and I'm getting about 10 charge-backs a week now.
This is a recent development. Stripe never had that much fraud before. Now I think every new order that is processed through stripe is actually fraud.
Comments
You got targeted by those morons. Time to time it happens with probably all providers, no matter it is Stripe or other merchant. Now you need to check all new orders and all one month accounts and ask photo ID's of all suspicious accounts, paid with CC's.
We work with Paysera.com , they are pretty good and most of fraudsters simply can't pay for services. But time to time fraudsters checks providers anti fraud tools
if they get services, they share information with others and then starts to make orders again and again.
Did you manually verify the orders?
I think it's better to verify documents before activating any orders.
Like Leaseweb, Hetzner and other host do on first order of any clients.
You can even ask for a selfie with a passport or Credit Card.
Some years ago i lost few x.xxx,xx EUR due to fraud. Stripe is just bad in terms of fraud. Using 2CO they dont have much chances coming trough.
How do you withdraw money? In addition to card payments, can you accept Bitcoin and PayPal without having your own PayPal account through them?
Try MaxMind + FraudRecord
Very few people would trust such companies with that sorta info, especially when security standards may not be that high (clearly ovh and such are an exception)
You don't force "3D Secure" when available?
I think it's better to verify documents before activating any orders.
Like Leaseweb, Hetzner and other host do on first order of any clients.
You can even ask for a selfie with a passport or Credit Card.
Not yet, but I will manually screen all new stripe payments.
2CO are not only crazy expensive, but they were no better. 9/10 orders paid through 2CO for me was fraud at one point. We just cancelled them in the end.
I've asked. Most fraudsters I've asked send me obviously photo-shopped pictures
I thought Stripe would do that. Is it something we need to set?
I thought stripe has a protection plan for another .4% of the total sale. Perhaps look into that.
Edit: https://stripe.com/radar/chargeback-protection
Of course. It’s all in the docs.
Also, read the part about SCA because your EU Customers will stop working if you don’t adjust your payment flow to new rules as early as this month.
2CO is 100 more incompetent as they do first allow order/pass all fraud screening and when the order is processed they do mark as fraud
Never had such problems.
My account is many years old, got a great deal aswell.
If you are using WHMCS, you can enable the FraudLabs fraud screening module. It is free and can block suspicious transactions for review to reduce chargeback.
It is only free for a certain amount of checks other wise no longer free.
Just be strict with fraud checks for a while and fraudsters will go away, also do keep your chargeback rate under control else Stripe may block your account
["payment_method_options" => ["card" => ["request_three_d_secure" => "any"]]
Using this option when creating either a SetupIntent or PaymentIntent in the new payment flow Stripe has ensures that you always request 3d secure verification if available.
FraudLabs is awesome better than maxmind services even they do the same functions. Using FraudLabs you be able to setup various validation rules exactly the same as Stripe Radar.