Yes, 2% is insanely high. I do about 2k/month through paypal and haven't had a chargeback in years. I think the last one was a few years ago, and that was just because a customer had their credit card stolen and just charged back all transactions they didn't recognise.
Until you have a massive, public facing product that sells internationally across many facets of customer - you've probably never experienced the hell of CB management.
Typically, you'll get: - Stolen cards (obvious ones) - Stolen cards (very insidious ones - all customer information, proxies that match the customer address, etc). Typically the only way to catch these guys is to have a hugely expensive 'express delivery' option, and manually filter each order that comes through on this option. - Dumb thieves (chargeback the day after delivery) - Smarter thieves (chargeback the day after posting) - Horrible people (chargeback months later) - Idiots (Unable to use a product, so chargeback) - Assholes (Weaponise chargebacks to blackmail you)
Words to anyone struggling to fight CBs / fraud: - Use machine learning, ie SiftScience (or similar) to screen all transactions. - If you use Stripe, use their Radar feature. - If an order gets one flag, place it into a review queue, and manually process it 24 - 72 hours later. Emailing a customer smokes out the majority of fraud. - If an order gets two flags - blackhole the order (refund the card, if charged)
The biggest thing is making your fraud processes opaque to scammers. If your site returns true/false responses, they'll just keep hammering until they find a combo of cards / proxies / etc that works. The only way around it is to shadow-ban: - Send blackholed orders to an approval page. - Send blackholed orders an approval email. Train your customer service to know which orders were banned, which weren't.
If scammers have to wait 1 - 4 weeks to know if their order worked or not.. they will move onto easier targets.
I wonder if this is why a friend of mine had to call in over and over about an order that kept disappearing.
That or the company really didn't want to fulfill their black friday sales.
Which products have 10%?
>Typically, you'll get: - Stolen cards (obvious ones) - Stolen cards
Is this with Paypal? Paypal does a hell of a lot of work to prevent stolen cards being used. I've never had a single case of this happening since I moved to Paypal. With Worldpay I did have the occasional one.
I don't use woot anymore because they did this to me... and apparently had no process for removing it.