Help!!! Online Transaction Loopholes?

Question

Hi Guys!! I found it absolutely surprising to make an online purchase with an invalid billing address and still my order was approved by the merchant - i've just purchased a download from a leading anti-virus software provider and mistakenly entered a completely wrong billing address and still my order was approved.

It makes me feel worried about the high risk of fraudulent activity loopholes online digital product providers contributes to ecommerce in general.

Can anyone supply me with any online store that will not allow the kind of transaction i have just experienced (i need a store that will decline transactions when billing address isn't valid or compatible with banks record); before i put an end to ever transacting online.

I need a prove to be re-assured that all stores ain't the same. Only provide store links pls.

Answer 1

I can't give you links because I don't know what you are shopping for. What I can tell you (I do this for a living) is that the merchant has a large number of options to pick from for credit card verification. Some merchants will just accept card number and date, some will verify the card code (three digits on the back of the card). Vendors can turn AVS (address verification service) on or off, obviously your vendor had it off. They can also reject transactions which exceed an amount they deem reasonable. They can reject if too many transactions with the same card arrive in too short a time. There are things you can't see: the vendor should encrypt transaction information exchanged with his card processor, for example. He can completely block selected users.

Obviously, your vendor has chosen a very low level of security. This is a problem, and you are right to complain. But the next vendor may make other decisions, and other mistakes.

When I set these up, I've always used a simple rule for verification: something you have, something you know. The something you have is the credit card. The something you know is the address. Yes, there are flaws with that logic, but there are limits to what you can do.