Good article, Kovich.
This is true, but when they slip through, the merchant is on the hook and may also have to pay a penalty on top of the money lost for shipping and the cost of the product. Most merchant accounts hit the merchant with a $25 or more fee on top of the chargeback for each fraudulent order.
Originally Posted by Natural Elements
A couple of things you should know. AVS is not foolproof. AVS only checks the billing street address and the zip code. They do not check delivery addresses. Some AVS systems only check the the street number and not the street name. You need to watch for AVS verification when you receive an order. I used Authorize.net (payment gateway) and Wells Fargo (merchant account) for one of my sites. Many orders that did not pass AVS still went through, sometimes with no explanation as to why it did not pass AVS. The orders were flagged, but they still went through. It was up to me to make the decision to accept or reject an order.
Even if the order passes AVS with flying colors, if it is a fraudulent order, the merchant still gets hit with a chargeback.
You always have to verify delivery addresses whenever you can. At Christmas time, about 5% of the people placing orders did not get their own street address correct. If the package goes to the wrong home, the merchant loses. I hold a lot of orders until the address can be verified.
As for the economy, my sales drop off of a cliff every time Obama gets on the television to tell us how well the economy is improving. I also run quite a few Amazon affiliate sites that normally do fairly well. The traffic is not down, but the sales are down dramatically. I don't see people buying things right now because they do not believe what the government and the liberal press it telling them.
Literally all of my friends who have e-commerce sites are reporting the same problems with sales.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin