Cayan and Chargebacks

Not sure others have experienced this, but our use of Cayan for ecom has been very disappointing and expensive. Their fraud detection (for ecom) is almost non-existent. We have received multiple orders that come to us from Cayan as approved, but when looking deeper, the AVS criteria was not met, the address did not match, the 3 digit code did not match and they sent it through as approved. Our shipping staff do their best to identify fraudulent orders, but we have still lost thousands of dollars in merchandise.
We switched to Stripe in hopes that their fraud detection is better.
Posted this more as a warning to others regarding Cayan, but are interested in seeing if others have experienced the same thing.
We switched to Stripe in hopes that their fraud detection is better.
Posted this more as a warning to others regarding Cayan, but are interested in seeing if others have experienced the same thing.
9 comments
At the moment, the best recommendation that we have for you is to use Cayan's Merchant Portal to review the payments you receive on your shop. On their portal, you will be able to see whether there was an AVS or CVV mismatch, and make a decision as to whether you'd like to fulfill the order, or cancel it.
Lightspeed HQ
We ended up switching to Authorize.net since our current bricks&mortar credit card processor has a portal with them (Heartland).
Just a note about fraud, in general:
Despite setting up extensive fraud filters over at Authorize.net, we've still been hit recently with a very sophisticated fraud where the fake customer had a fake linked-in profile connecting to a fake ad agency in Manhattan that must have had a fake BBB profile in addition to other presence on the net. A call to her "business" resulted in talking to a woman who had ordered $4K in product. We insured it and required a signature from UPS. Good thing, because the items were sent back, "Customer refused delivery, had never ordered."
This is in addition to the thousands of dollars in fraudulent orders I've managed to evade, despite the fake customers having real, stolen, credit cards. In those cases I was able to cyberstalk the supposed customers and contact them via a different connection (their family car dealership, etc.). Not so with the fake Manhattan ad agency fraud.
You can tell they have lots of pretty sophisticated automated heuristics, but sometimes it takes awhile to submit their decision. In those cases you can tell they had staff manually verifying things on their end.
Since our companies sell luxury retail jewelry online, the price points are high as are the fraudsters' attentions. So we had to do something!
Starting today, the following fraud protection has been implemented into the Cayan payment integration:
CVV Mismatch: Card Verification Value, is the three-digit number (usually) printed on the back of the card.
AVS Mismatch: Address Verification System, the billing zip code used during checkout needs to match the zip code associated with the credit card.
If there is a mismatch the customer will be notified that the payment has failed and asked to try again.
As usual, the order will show as awaiting payment in the back office and automated payment notifications will be sent (if enabled) to encourage the customer to complete the order.
This is a great step towards better fraud protection!