CC Merchant and CC Fraud

**keichan82** · 07-13-2006 01:57 AM

Hi all. I was talking to a CEO of a retail store and asked him why he didn't sell his item online. He said that 1/5 of all sale are cc fraud and no merchant out there will provide good protection.
I am on a verge of starting a online retail store and am worried about getting a good merchant. Please give me any suggestion on good cc merchant and options on what this CEO said.
I am located in the USA.
Thank you.

**Lex** · 07-13-2006 03:16 AM

www.2checkout.com if your worried about high cc fraud as they dont charge you if cc fraud is the reason for a chargeback so they would be the best choice though they do charge more than others so i suggest you go with someone like www.paypal.com for now then if fraud is high switch.

**youngmoneyblog** · 07-13-2006 09:20 AM

i am using authorize.net for my gateway and North American Bancard for my merchant. I have a sales rep here in Florida if you want his contact. He gave me a killer deal. Just PM me.

I'm launching a store too! Good luck man

**chadking** · 07-13-2006 11:06 AM

We use e-onlinedata.com and card cardserviceinternational.com for our merchant services. I would give e-onlinedata a little better score than CSI for customer service and flexability.

You can also use Paypal merchant services for some service, to provide a couple more options to your customers.

Good luck!

**ginginca** · 07-13-2006 11:06 AM

We always recommend a client start with paypal initially so that they can determine what type of demand there will be. Paypal is so much cheaper on the start-up end of things.

According to the Internet Marketing Center (Corey Rudl) you lose about 20% of sales if you only accept paypal.

But paypal also has a nice feature called virtual terminal only available to USA merchants that you might investigate.

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We personally haven't experienced this to be an issue. I'm not sure where the 1/5 figure comes from. I can't imagine it's that high.

**keichan82** · 07-13-2006 02:15 PM

Thanks. I was scrared for a moment. Now I feel more confident in starting my onlin retail store.
As for merchants I would have to look at the pros and cons to see if it is worth paying more.

What percentage of sales would you guys say is fraud? just in your opinion. thanks.

**theprodigy101** · 07-13-2006 02:47 PM

Some online shopping cart software also come with a basic fraud detector where they check the address of the buyer against the address associated with the credit card so this helps against fraud as well. I know godaddy's shopping cart has this feature. I would definitely go with PayPal to start off.

**Outta Hand** · 07-13-2006 03:22 PM

This is an "unfounded" truth, granted if you go to use certain merchant accounts you may be unprotected but overall most CC fraud happens in ways that don't involve face-to-face interaction.

If you go and use verisign, authorize.net, 2checkout, or Paypal they are for the most part reliable. If this is a big concern then having someone consult on the merchant account you should use could prove to be very helpful.

Of Note: Remember that no two payment gateways are the same and sometimes the service they offer differs. Pricing can make a difference in the quality of service you recieve and the services that are available to you as a merchant.

I am cautious of Google Checkout just because its just come out to market but over time it may be another option to consider.

Hope that helps.

Originally Posted by keichan82

Hi all. I was talking to a CEO of a retail store and asked him why he didn't sell his item online. He said that 1/5 of all sale are cc fraud and no merchant out there will provide good protection.
I am on a verge of starting a online retail store and am worried about getting a good merchant. Please give me any suggestion on good cc merchant and options on what this CEO said.
I am located in the USA.
Thank you.