Constant fraud attemps

[bbrown-RAS]

In the last 5 months I have had numerous fraudalent transactions using all PayPal services including Braintree. 3dcart is my ecommerce provider and I also sell via Ebay.

The folks at PayPal gave most of my money back since I had protection on my account since 2006. I had hours of discussion with PayPal but I have to admit I don't understand why these transactions went through in the first place.

Now I have two new (for me) schemes operating on Ebay and I need to know what filters I have to set to prevent these transactions from going through. I am aware that Ebay and PayPal are no longer connected so for Ebay sales I might not be able to do anything at PayPal but I just thought I'd mention it for other PayPal users.

In this scenario an Ebay buyer with one name "joe blow" bought an item and paid for it with a credit card under a completly different name. This buyer then wants me to send the item to somebody else which we don't do anyway. Is there any way to catch this on the PayPal side? I am told no by PayPal because any PayPal account holder can use anyone's credit card to make a purchase. Does anyone have any ideas how this can be prevented with settings? ie the name on the credit card must match the buyer name you are sending it to?

Second scenario, a random person buys something from a random seller on Ebay. The Ebay seller then goes to my ecommerce site and buys the same item with a stolen credit card and has me ship it to the Ebay customer. I have no idea the item was purchased on Ebay and I am just a drop shipper. So eventually the credit card hold disputes the charges and I get stuck with the chargeback. In this case I guess I was coverd by my PayPal protection. But this could have been easily prevented if I had just known about this scheme and simple filters were applied such as the PayPal account user name must match the credit card name. How about just setting a flter that says we only accept US issued credit card. I guess I am looking for ideas on how to prevent this.

I am told I can pay extra for better filters but in my mind we should be able to set basic filters to catch this. I am also told that I can use Braintree to handle PayPal and the better Braintree filters will be used to catch these transactions. This is not helpful since I need the ability to input call-in orders to 3dcart which I get number of daily.

I am seriously looking at other gateways/merchant services since all this happened. I have been a PayPal only person since they first came out with their own gateway/merchants services. I liked dealing with one company and I rarely had chargebacks. This could all be coincidental but it all started when I switched to Braintree.

[Whac-A-Mole]

Your buyer could have used Paypal to make payment as a guest,then all he has to do is to enter the credit card number,expiration.

Not sure what else he needs to enter,may be his address,name.

if he knows the name of the person who has the credit card and where he lives,and the card is not reported as stolen ,there is no way Paypal knows he is using a stolen card,unless the cc issuer caught it and call the owner.

CC issuers do have software in place to check for possible fraud,like they know your habits,like you use the card t o buy coffee at Starbuck,a book at AMZN or pick up drycleaning,fill gas and all of a sudden you are in Cancun,Mexico buying expensive jewelry?

The problem with chargeback via Paypal is that they dont tell you much what the other party said.

Paypal has seller protection for unauthorised transaction,the seller needs  to prove he has shipped to the address on paypal notification,not necessarily delivered and the item must be eligible for seller protection.

If you do enough volume/profit,you may want to consider having your own merchant account to accept credit card,the bank which provides your merchant account would do more than PAYPAL,if you have an order you are not sure,you can call them and they can call the cc issuer for more information,if there is a chargeback,they will pass on your side of the story and fight for you and relay back what the other party has to say.'

But it would cost you more,chargeback fee would be more,there is also minimum fee if you do not generate enough business for them each  month and there could be annual membeship fee and tiered discount rates for different cards,not all cards are created equal. 

[Whac-A-Mole]

if you have your own merchant account to accept credit card,you have to interpret the return codes and decide if it is OK to ship,while with Paypal ,they have software in place to interpret these return codes plus more,like foreign countries,person who uses the card,past history or IP address etc ,or he has a history of disputes /default or using a proxy address.

[bbrown-RAS]

I also have credit card processing on the same account using Braintree. PayPal can be set up to process through Braintree but the problem is that I then lose easy manual processing of call in orders because according to Braintree/Paypal you can't use PayPal payments pro and Braintree. You can only use one or the other. So if someone uses PayPal to process a credit card they don't have much in the way of fraud filters and these pass through the system. They are not forced to use Braintree which does seem to have good fraud filters for credit cards. It seems to me that someplace in either the 3dcart fraud filter system and the

Braintree system these totally bogus transaction would be flagged.

I can't get anyone at either company to tell me if they will better integrate the fraud filter system to catch this type transaction. At this point I see no advantage to PayPal pro account if this type transaction can't be caught. Does that make sense? I mean what I am paying for?

[bbrown-RAS]

many thanks for helping but if you have both Braintree and PayPal payments pro the customer can use a credit card to pay for purchase and bypass the better filters at Braintree. As I said earlier the only reason (a very important reason) is that I can directly enter call in orders and process payments only if I have PayPal payment pro and gateway setup. You can't easily enter call in orders to Braintree and as it was explained to me this is deliberate to eliminate fraud more easily. All am asking is why we can't use these same fraud filters from Braintree on PayPal payments pro so these transactions can be caught just like they are at Braintree. The obvious solution is to offer these same fraud filters via PayPal and not have to pay another $20.00 a month like they want you to do now. I went with PayPal/Braintree originally because they have good fraud protection for a reasonable price. It just seems like a money grab to me. It also make me wonder why I just don't drop them all together and go with a third party payment processer and separate PayPal account.

[DPCreations]

It's interesting in that Braintree is a subsidiary of PayPal.