Should I allow high risk payments in Stripe?

[santiago44]

Anyone have experience with high risk payments in Stripe? Basically Stripe marks some payments as high risk (with some ML algorithm) as they are more likely to be refunded. However, I'd like to know the basis on which this flagging is made. I read that there are false positives. Also don't wanna pay the $15 chargeback fee (wtf?). What should I do?

 

[Editorial Guru]

check online review about the site where you planned to buy. if you find any negative review then don't do any payment and go for alternative, stripe will show high risk payment in case of seller had high refund or high chargeback ratio or Geographically prohibited items. so check background and do payment.

 

[santiago44]

check online review about the site where you planned to buy. if you find any negative review then don't do any payment and go for alternative, stripe will show high risk payment in case of seller had high refund or high chargeback ratio or Geographically prohibited items. so check background and do payment.

I'm sorry, there has been an misunderstanding. I am the seller in this case. If Stripe marks for example all Brazilian credit cards as fraudulent, that's BS and I won't allow that. But if they really can detect which card is stolen an which not, then I'll leave it on.

 

[Gannibal]

For countries with AVS you should be worried but for the rest of countries there are false positives regarding the ip address of the transaction and the address/zip code of the card holder.

 

[Editorial Guru]

ask the customer to do payment via e-commerce site payment by them or email link, you send a email of payment and ask them to do payment via clicking the link and they will do it on their own if they have all credentials and pin or otp. otherwise ignore that customer. it may end up in risk.

I'm sorry, there has been an misunderstanding. I am the seller in this case. If Stripe marks for example all Brazilian credit cards as fraudulent, that's BS and I won't allow that. But if they really can detect which card is stolen an which not, then I'll leave it on.

 

[santiago44]

For countries with AVS you should be worried

Sorry you mean without AVS or with avs? AVS is better safety, right

I'm selling digital goods (gaming content), and I'm only asking the email address in the payment form. So basically Stripe gets no other information than the email address, IP, card number, card expiry date and CSV. It makes the risk evalution based on that information. I'm worried that Stripe actually just makes the evaluation based on geolocation under the hood. Also I read that refunds can occur even after 3 months of the purchase, which is such bs. I personally think the card holder should pay any refund fees, because they're the ones responsible for their cards.

 

[santiago44]

ask the customer to do payment via e-commerce site payment by them or email link, you send a email of payment and ask them to do payment via clicking the link and they will do it on their own if they have all credentials and pin or otp. otherwise ignore that customer. it may end up in risk.

Oh, so for high risk customers ask them to fill out a more detailed payment form with address and full name. That's actually quite a good idea

 

[Gannibal]

Sorry you mean without AVS or with avs? AVS is better safety, right

I'm selling digital goods (gaming content), and I'm only asking the email address in the payment form. So basically Stripe gets no other information than the email address, IP, card number, card expiry date and CSV. It makes the risk evalution based on that information. I'm worried that Stripe actually just makes the evaluation based on geolocation under the hood. Also I read that refunds can occur even after 3 months of the purchase, which is such bs. I personally think the card holder should pay any refund fees, because they're the ones responsible for their cards.

You should be less worried imo until you establish charge back rate and the fraud risk. There is no point of a long payment form for a digital product and since you collect minimal payment info the flagging maybe be as a result of that.

 

[santiago44]

You should be less worried imo until you establish charge back rate and the fraud risk. There is no point of a long payment form for a digital product and since you collect minimal payment info the flagging maybe be as a result of that.

Ok thanks, this sounds reasurring. I noticed that some customers have tried to pay multiple times with incorrect card numbers. I read that some fraudsters test stolen credit cards on random payment gates, or then it's just customers not knowing how to type their card numbers properly, lol..

 

[Editorial Guru]

Oh, so for high risk customers ask them to fill out a more detailed payment form with address and full name. That's actually quite a good idea

Yes, They have to do payment manually on their own, you should not get credentals via phone and do payment instead forn them, payment must be done by them via through your website or email link.

 

[Gannibal]

Ok thanks, this sounds reasurring. I noticed that some customers have tried to pay multiple times with incorrect card numbers. I read that some fraudsters test stolen credit cards on random payment gates, or then it's just customers not knowing how to type their card numbers properly, lol..

Most probably. When shopping I'm super keen always when keying the card details. I guess all people do the same save for the true ballers.

 

[Capo Chino]

Mainly, virtual carders.

 

[FatBee]

Anyone have experience with high risk payments in Stripe? Basically Stripe marks some payments as high risk (with some ML algorithm) as they are more likely to be refunded. However, I'd like to know the basis on which this flagging is made. I read that there are false positives. Also don't wanna pay the $15 chargeback fee (wtf?). What should I do?

Chargeback fees are normal in this type of payment processors, other than that its really up to you if you want to take a risk.

1. Flagged cuz mismatched IP and ZIP
2. Flagged cuz Address is not matching delivery address
3.Flaggedcuz bad IP


There are million of variations why the payment is flagged, so I say that their algo is junk.

 

[santiago44]

Chargeback fees are normal in this type of payment processors, other than that its really up to you if you want to take a risk.

1. Flagged cuz mismatched IP and ZIP
2. Flagged cuz Address is not matching delivery address
3.Flaggedcuz bad IP


There are million of variations why the payment is flagged, so I say that their algo is junk.

I wish they were more open about this. But luckily most transactions go though

 

[Dr.Rok]

I wish they were more open about this. But luckily most transactions go though

yeah, sadly its just the nature of the beast. I know in the past working with other merchant services they would flag items based on age of email etc, its worth finding out some of the qualifications that get it flagged. Chargebacks are going to happen on some level, but I get trying to minimize it as much as you can.

 

[santiago44]

yeah, sadly its just the nature of the beast. I know in the past working with other merchant services they would flag items based on age of email etc, its worth finding out some of the qualifications that get it flagged. Chargebacks are going to happen on some level, but I get trying to minimize it as much as you can.

Yeah. One thing I noticed is that it's only the +$100 transactions failing. I wonder if they make their risk evaluation based on the transaction size. I mean there's not that information they're making the decision based on.

 

[PBN Systems]

You'll be having a real bad time when the carders find your site.

 

[Lets Make it]

Interested to know as well,
it's like taking some kind of risk to get some extra earnings, but are they worth it?

 

[santiago44]

You'll be having a real bad time when the carders find your site.

Carders are the ones that spam stolen credit card details to test if some work?

 

[Deleted member 657006]

A lot of systems are getting buyers to prove there self from adding there personal FB and others social accounts, and other info to match before taking payment.
Keep getting the decline or flags can damage a business credit or ban a gateway service.
Maybe it best you add more security before they pay .