Prevent Chargebacks, stop online credit card fraud, merchant protection from online credit card fraud.

Are criminals killing your online business?

The use of stolen credit card information to make online purchases is increasing at an alarming rate, and costing online merchants billions of dollars per year lost revenue. Using FraudSmack to research online orders for signs of fraud before processing a sale will greatly reduce your risk of being a victim to these criminals.

The FraudSmack service works by building a RiskFactor score for each potential sale based on the information you already gather in your normal process of selling products to your customer. Your code makes a call to FraudSmack with key information about your customer, and in seconds, we return a RiskFactor score to help you decide whether or not you should A.) process the sale, B.) manually review the potential sale, or C.) immediately block the sale. All this happens before you attempt to process the credit card, and before you allocate resources for the sale (shipping goods or creating an online account, etc.). Even better, it is completely automated, and completely configurable via your account control panel.

If you are doing manual checks to try to determine whether a sale is valid or not, you are probably already checking the location of the IP address against the location of the customer's credit card, seeing if they are using a free email account or a business email address, and combining that with your gut feeling about the sale. No system is perfect, but this is a great first step in cutting down on fraudulent orders.

Taking the next step.

FraudSmack allows you cut out the time spent on manual checks and receive an instant RiskScore and Result telling you whether you should A) accept the order, B) be cautious of the order, or C) deny the order. Based on this result, your shopping cart can direct the potential customer to the next step, which will either be A.) continue with the sale, B.) handle the sale as you would when you are suspicious, or C.) direct the user to a page telling them that you can not process their sale.

Our goal for FraudSmack was to stop 90% of attempted fraud, with 10% as an acceptable rate of false postives (valid sales that scored as potential fraud). We far exceeded these initial goals and have seen FraudSmack stop approximately 95% of the attempted fraud, while only having 5% false positives. While we can't make a guarantee about how it will work in your situation, we do believe it will become your most valued tool in fighting fraud, and we back that up with a No Risk 30 Day Money Back Gaurantee.

Isn't it the credit card processor's duty to spot fraud?

NO. It is a common misconception for new online merchants to think that receiving an authorization from their credit card processor means that the card is safe and that you will receive payment for the sale. The credit card processors are only authorizing the card to be good for the amount of the sale, and they are NOT guranteeing you that they will pay you if the charge is contested by the card owner.

You, the merchant, are responsible for verifying that the owner of the card is the one making the purchase, and you will bear all costs of the losses, and chargeback fees (generally $25.00) for any charge that is contested by the card owner. In the end, a single purchase at your store with a stolen credit card is going to cost you the administrative and shipping costs of the sale, the cost of goods and shipping, which you've lost by shipping them to a criminal, and your bank account will be deducted for the amount of the sale plus the chargeback fee and sometimes additional transaction fees. One chargeback will very likely cost you more than an entire year of service with FraudSmack.

FraudSmack allows you to take a proactive stance against the criminals that use stolen credit cards instead of being at their mercy, and dealing with the consequences of processing illegitimate sales.