What You Need to Know About Chargebacks

Fraud is too sneaky.

Most small to medium size e-commerce owners don’t know much about fraud. Sometimes, they don’t realize that their website is being a target for fraudsters.

But if your e-commerce website sells easy resell-type products while not having any fraud prevention solution in place, you become the easy target.

Why should I care about credit card chargebacks?

Here is the bad news. If your e-commerce website is a victim of fraud, you will be charged 3 times…

This reason is what makes being an e-commerce business owner so difficult. Here’s why:

  • You paid for the product since you shipped it days BEFORE receiving a chargeback
  • You have to pay the bank
  • You receive a notification that it is a fraudulent order
  • So, you have to pay the chargeback fee (~$30) for the fraudulent order

For instance, a 100$ product is a fraud cost of ~$230 for you!

How to identify fraudulent orders

It depends on your payment gateway but most of the time the orders should be sort in 3 categories:

  • Green:  The good orders.
  • Red:  The bad orders.
  • Orange:  When your scoring machine can’t decide, it places the order into the orange category. Therefore, you should these orders manually.

Most payment gateways accept green AND THE ORANGE orders after a small delay…

If after your manual review, you verified that the orange was OK, then great. We call that kind of order a “false positive”. If this is the case, the bank will contact the customer directly to validate the purchase order.

How do I prevent this?

The easiest way to mitigate this problem is to use a platform that will automatically detect whether an order is fraudulent or not (green, red, orange) for you. This will remove a lot of headache as a business owner.

At SELLsecure, we eliminate the entire manual review process. Our technology is able to verify all information about your customer by collecting their entire online footprint. We then give each customer a “fraud score” so you’re able to skip the greens and only worry about the red, sometimes orange customer.

Check Fraud Emails

Key takeaways

Dealing with chargebacks are a pain for all e-commerce business owners. Chargebacks will result in you losing more than double of the price for your sold product. The best solution is to use online resources that automatically detects, sorts and notifies you when there is a potential fraudulent order.

If you’re an e-commerce business owner that’s dealt with fraud orders before, please share your experience and solutions to prevent it below. Comment any questions you have about chargebacks or credit card fraud and we’ll be sure to respond ASAP!

Lower your chances of fraud — try it now for free!

How to Check An IP Address

ip address

Having the power to check an IP address of a specific computer can be very beneficial in a lot of ways for your e-commerce business.

First, you’re able to uniquely identify where a specific computer is to make a rational judgment on whether it’s a fraudulent order or not. Second, you have the superpower to monitor the customer’s recent activity on your website. For example, in a simple case, you may notice that a single device is using multiple emails through the IP address. This is a great indicator of fraudulent activity.

Before we get any further, let’s first give you an introduction to IP addresses.

What is an IP Address?

An IP address is a string of numbers separated by periods. This address tells us where on the Internet the traffic is coming from. Anytime a user enters a website, their IP address is revealed.

Here’s an example of an IP Address: 173.547.302.128

The IP address can be used to identify a user between browsing sessions. The drawback to an IP address is that IP addresses are very broad and changeable. Whenever a user connects to a merchant’s website from the University of San Francisco’s servers, everyone connected to USF’s servers will have the same IP address.

At the end of the day, an IP address can be a useful signal for detecting fraudulent behavior by monitoring the speed of purchases made.

Level Up

If you want to take a step above to identify your users, you should take a look at SELLsecure’s Device Fingerprint. Device Fingerprints can be used to predict the likelihood users will commit fraud based on their signal profile before they have even committed fraud.

Find out its geographical location

The first thing you can do is enter the customer’s IP address on utrace.de and review the distance between the billing/shipping address and IP address.

This is an important step to review because if it’s thousands of miles away from the billing address, this could be a sign of fraudulent behavior.

Remember, you have to take other data points into account because that isn’t always the case. For example, someone from New York could be buying a gift for a relative in California.


utrace.de website home page

Is it hosted by an organization’s server?

There are certain IP addresses that are registered with organizations that operate out of certain geographical locations. This information is publicly available online so you’re able to check if the IP address is hosted from an organization’s server.

Utilize paid and free resources that take in an IP address and output’s organization name, carrier code, IP country, and geographical coordinates for that user connection.

Having this power help merchants make higher-level observations about their fraud.

Dive deeper and get more information

Next, you can use an online tool like who.is to get more information about the custom domain name of a website or IP address. This step is only necessary if you get an IP address that isn’t within a near vicinity of the billing address.


who.is website home page

Final words

If you enjoyed this post, please share it with your colleagues. For those that used this as a refresher, we hope you were able to add to your arsenal. If you have any tips on how to check an IP address or want us to answer other questions about this topic, share your thoughts in a comment below!

Lower your fraud cost — try it now for free!

How to Verify A Customer’s Phone Number

As an e-commerce business owner, your job will partially consist of manually reviewing customer orders. Having said that, you want to make sure that you verify all basic information so you’re less likely to approve fraudulent customers.

So what should you look at to validate a customer’s identity? The easiest is by verifying a customer’s phone number and/or the email address.

Here, you’ll find out how to verify a customer phone number on your own using resources available online.Do a search of the customer phone number online

Do a search of the customer phone number online

Whitepages is a website where you can enter the phone number of a customer and it will find information about the phone carrier and location.

Verify a customer phone number

You need to match the information with the order to see if there are any inconsistencies with its location.

Enter the number in Facebook’s search field

Facebook has over 1.2 billion users and its users add all types of information on their personal profiles. Now, with Facebook Messenger, users input their mobile numbers on the app to use the platform for audio and video calls.

What does this mean?

This means that the mobile numbers are linked to someone’s Facebook profile creating a digital footprint of the number and user. All you need to do is search your customer’s phone number in the search field on Facebook, then see if there’s a profile that’s associated with the number. 

The user’s Facebook profile must be set to “public” in order to see if the number is associated with anyone on Facebook.


Verify the mobile carrier for free

Another handy website to check a phone number’s carrier, whether it be a wireless or landline, is freecarrierlookup.com. This is an extra step that you should take to verify if the phone is a real line and not a disposable phone number.


Use SELLsecure Review

You can streamline your fraud detection process by using SELLsecure Review. We validate a customer’s identity by collecting all data of the customer on the web in less than 10 seconds.

The gather and validate all customer information (e.g., email address, IP address, social media accounts, credit cards, billing and shipping address) on one platform. Giving you a turn-key experience to do more with your day and less on manual review.


That’s it!

Have you encountered fraudulent phone numbers? How did it affect your business? Share your thoughts below and comment any tips you have to help business owners in the same situation.

Lower your fraud cost — try it now, for free!


How to Avoid A Fraudulent Email Address

How many times have you encountered a fraudulent email address? 

As an e-commerce owner, it’s inevitable. All of your transactions are dealt online, so your entire customer base is made up of email addresses. Worrying about whether all customers are valid or not is mentally and physically draining.

Today, we’ll be focusing on how you can take a simple email address and identify fraudulent signals from a single email address.

How is email such an effective identifier for fraudulent activity? It’s a unique piece of user data that are collected via the web every time someone creates an account or makes an online purchase.

Here are the steps you can take to not only analyze the components of an email address but reveal different facts about the person behind the email address.

Search the email address online

Paste the email address in Google to see if there’s a social media profile or if online forums profile the identity, job, and location of the customer.

Then you match the information with the order to verify if the email address matches the customer’s identity.

Check the email address on Facebook

If you paste the email address on social media sites like Facebook or Twitter and it’ll show you who’s profile is associated with it.

See screenshot example:


Smart cues to look for

  • Email Username
  • Repeat fraudsters will often create many email addresses and only change some characters in the username.
  • For example, bob001@fake.com is probably related to bob002@fake.com. Which means this user is probably using a fraudulent email address.
  • Check to see if the email and the billing information share similar names.
  • Email Domain (this is the website portion of the email address) See example below.


Fraudulent email address domain name

Is it a disposable or a free email address?

There are a ton of sites that you can register for a disposable or free email address. Some examples include:

  1. EmailOnDeck.com
  2. GuerrillaMail.com
  3. MailDrop.cc
  4. Yopmail.com

Use online fraud detection resources

You can streamline your e-commerce fraud detection process by using SELLsecure Review. Our tool validates a customer’s identity by collecting all data of the customer on the web in less than 10 seconds.

It uses machine learning to analyze an email address and determines if it’s been associated with fraudulent activity, as well as calculates how long the email address has been active online.

You’ll be able to verify all customer information (email address, IP address, social media accounts, credit cards, billing and shipping address) in an all-in one platform.


Take advantage of the resources you have available to save you time and ultimately, money.

If you’ve experienced a fraudulent email address, let us know how you helped your e-commerce business overcome the situation. Let us know which tools you used to help you mitigate fraudulent activity. Share your thoughts in a comment below.

7 Tips to Detect Fraud For Your Ecommerce Business

Being a new eCommerce business comes with a lot of risks. The biggest problems you’ll face is unauthorized transactions and fraudulent customers. It’s more difficult for an eCommerce store than a retail store because:

  1. You can’t validate that they’re a real customer
  2. You face a lot of issues with unauthorized transactions that result in chargebacks which can cause you to lose a lot of money

While eCommerce experts are able to reference data points on a regular basis to identify fraudulent behavior, this guide is specifically designed for new eCommerce business owners to identify the what things you should be looking at for fraudulent behavior.

Continue reading “7 Tips to Detect Fraud For Your Ecommerce Business”