[MUD-Dev] Buying benefits

[Matt Mihaly]

On Fri, 8 Jun 2001, Peter Tyson wrote:
> According to Matt Mihaly:
 
>> The first thing that sprung to my mind is that they seem to have
>> a tenuous grasp on the ins and outs of processing credit card
>> orders. Everything I've read about them just screams that they're
>> going to be utterly screwed by credit card defrauders.
 
> Not necesarily, I know from online gambling companies (surely one
> of the most popular destinations for credit card fraud!) that with
> good systems they can keep fraud down to around 2%, at the very
> most it's 5%.  Apparently, blocking transactions from Russia
> cleans a whole 1% or 2% off your fraud total!

Do you know how much you'll get fined if you were to operate
continuously at 5% fraud rate? Visa/Mastercard will kick you out for
that kind of fraud rate, and your merchant bank is almost certain to
start fining you. I would be quite curious, though, to know how
online gambling companies manage that. As you say, they would seem
quite easy to defraud. 

--matt

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