PayPal Confusion!

[crazylegsreilly]

Morning All,

I've just set up Paypal as an alternative payment method and have had a few orders overnight .

With Worldpay, they do some AVS checks that give you an idea of how much risk you are taking by sending the product out. With Paypal, I can't see the same sort of thing on the payment details page.

I know that if someone is Verified, then their details have been checked and we can send the product out (correct me if I'm wrong here!). However, if someone goes through the card payment processing with Paypal (ie. they don't have a Paypal account), how do you know that the payment is definitely ok?

Originally, my idea behind setting this up was to reduce fraud, but I think I may have been misguided. I could obviously do with some help!!

If anyone knows anything about this process, please let me know.

Thanks in advance,

Darren

[Legends]

Originally, my idea behind setting this up was to reduce fraud, but I think I may have been misguided. I could obviously do with some help!!

If anyone knows anything about this process, please let me know.

Darren

Hi Darren

As far as I am aware paypal do not offer any fraud screening and I think you will find that if a fraud is committed then you will be responsible for bearing the charge back.

Very few transactions on paypal are covered by their sellers protection policy.

If you are trying to cut down fraud then paypal is not the way to go.

We have even had a charge back from a verified account, where paypal says that a stolen card was used - we had to stand the cost (fortunately it was only a few quid).


Paypal is a useful PSP as a catchall for people who do not have credit cards or who use paypal as a bank, or ebay sellers who buy from you, but unfortunately it is not very secure at the moment.

just my 2p worth.

Cheers

[crazylegsreilly]

Shame

Thanks for your response Ian,

Shame that a verified account won't offer further protection. Quite surprising really!

We've had a few fraudulant transaction through Worldpay recently - around 4 or five since xmas. We identify most of them (luckily, we've only ever sent one out and lost the money), refund them immediately and don't send the products out. The annoying thing is that when Worldpay process a chargeback, they hold back the chargeback amount from your balance, even though it was refunded weeks before.

The worst part is that the fraudsters tend to order four or five times more than a genuine customer, so this process hits us quite hard - it can take WP 3 weeks to process a chargeback.

Has anyone been able to counter this?

[MDS]

Hi Darren

Have you tried pre-authorisation on your Worldpay account?

You do not need to refund as it will expire in 5 working days, so no commission charges either

Bit of extra work, but I think it is worth it

Mick

[crazylegsreilly]

Sounds like a dream!

Thanks Mick,

I haven't heard of it. I'm sure you're busy, so no need for a run down, but can you briefly tell me what it is and how it works? How much does it cost?

Thanks again,
Darren

[razzlesuk]

Hi

We use worldpay with a pre-authorisation account, works, much better for us, less charges if you do not process the order. Just contact Worldpay, sak them to change your account to pre-authorisation account, then they can convert your current account. Just remember to accpect all your transactions!

Anthony

[MDS]

As Anthony has already said, its a simple process.

Give Worldpay a call, you will need to put it in an email probably.

It is free as far as I know, we had it from the outset, has saved us so much in fraudulant costs-well worth the inconvenience of manually completing.

Mick

[MDS]

One more thing, you will need to change the Worldpay setting to pre-auth in Actinic.

Mick

[crazylegsreilly]

Thanks Everyone

I'll give them a shout. Really appreciate the replies.

Darren