7 replies to this topic

[WD.]

Current nexus fraud rules such as putting transactions on hold based on entered information is weak unless Nexus can cross reference information. For example, just because a customer is purchasing from China doesn't mean it's definitely fraud. So what happens if you setup a fraud rule to hold purchases for users in China but fund are still sent via Stripe? Are funds held or automatically paid?

For example, when using Stripe, will Nexus check to see if the billing address matches that of the credit card #?

https://answers.stri...es-stripe-offer

Since Nexus doesn't store a shipping and billing address, I just assume it doesn't... Correct me if I'm mistaken.

I would like to know what Nexus does to prevent fraud, disregarding the user inputted fraud rules in the ACP that does not handle any cross referencing of information.

[Mark]

If MaxMind integration is enabled, many more options become available for fraud rules.

Here is more information: http://community.inv...te-fraud-rules/

[WD.]

That is perfect - thank you. When using Maxmind, does Nexus differentiate between mailing and billing address?

[Mark]

It uses the billing address.

[raindog308]

Could IPS answer the original question...if an order is held, how does charging work if no CC details are stored and the order is later approved?

[Mark]

Could IPS answer the original question...if an order is held, how does charging work if no CC details are stored and the order is later approved?

The payment is taken but Nexus doesn't consider the item purchased (so the shipping order isn't created or whatever) until the transaction is approved.

[raindog308]

So is this the sequence of events? I'm mainly interested in hosting-related Nexus use.

1. Customer places order
2. Customer's credit card is charged through whatever gateway is configured/chosen
3. Order is held - either by Maxmind, custom fraud rules, or Nexus is configured to hold all orders
4. Admin looks at the order, and either
4a. Approves the order, at which time provisioning takes place, or
4b. Rejects the order, at which time a refund is processed to the customer's card

Questions:

(1) Is that the sequence?

(2) if 4b, is the refund automatic?

(3) Hosting is a notoriously high-fraud-rate business and I'm concerned that excessive refunds would damage a merchant account...?

My other concerns are:

(a) if a refund, I'm not sure the merchant gets all of the typical 30 cents + 2.9% or whatever back, and

(b) between order and refund, you have to hope no chargeback is initiated, as then you're hit with a $15+ fee also

[Mark]

1. The sequence you posted is correct.

2. Yes, Nexus will tell the gateway to refund the transaction.

3. Gateways will handle it differently, I would recommend contacting your desired gateway for more information. I know for example, Authorize.Net allows you to void transactions within a certain time-frame before a refund is necessary, and Nexus will automatically try to void and only refund if it's been too long to void.
Proper configuration is also important - if you will reject certain criteria, you should configure fraud rules appropriately. If the fraud rule instructs Nexus to reject a transaction, it will not take payment.


a. It would depend on the gateway but as far as I am aware, most gateways refunds the fees.

b. See above comment about proper configuration.