Paypal/Verisign Multiple Authorizations
Posted: Mon Oct 20, 2008 2:37 pm
We have been having a long term issue (5+) years with payment authorizations and fraud filtering - really hope someone has an answer.
The scenario is as follows. Please keep in mind, for whatever reason, a lot of people don't seem to know the correct billing address of their card. 1) A customer places an order. 2) A request for authorization is sent through the Gateway to the card issuing bank. 3) Card Issuing bank accepts authorization and sends back to Gateway that the card is authorized for the funds requested. 4) Gateway - in our case Paypal Payflow Pro - takes the response from the card issuing bank and then "scrubs" (runs transaction through fraud filters) the transaction. 5) If billing address or something else is not right the Gateway returns to our cart that the transaction is declined by fraud services. However, the card issuing bank is left with an authorization. 6) (Let's pretend it is just a billing card address AVS issue) Customer calls us back after being emailed and we attempt to correct the billing address. This can sometimes take several attempts, but every time we make an attempt another authorization is left on the customers credit card trying up more and more funds for a period of time. 7) The customer calls us back mad as a wet cat that we have now "charged" their card 5 times and our customer service is then tied up trying to explain to the customer the difference between an authorization and a charge. They are then tied up further by customer requests for us to send something to their bank asking to immediately void the authorizations that were no good.
I just got off the phone with Paypal and their only answer was that there was no answer. I asked why they do not issue a void for the authorization at the time a fraud filter is tripped and they had no answer accept that they can't.
Things I know. Please read before answering
• We can send/fax/email a letter on our letter head requesting an immediate void of the bad authorizations. However, this ties up labor and leaves a bad taste in our customers' mouths. Not matter what we are still the bad guys.
• We can attempt to alter our AbleCart installation in some way (not sure if there is a setting or if this will require code customization?) so that when an authorization is requested it is only for $0.01 - $1.00. Then only tying up $0.01 - $1.00 rather than $54 (our average order value) each time we make an attempt. Later we can capture for the full amount of the order. However, now we are left with a maybe it will maybe it wont situation were the order has been pulled and packed, but the funds can't be captured. This is probably our best bet if no one has a better answer.
• I am very aware that the authorization will go away from 1 - 5 days depending on the card issuing bank. This is not acceptable customer care in my opinion as those funds for each authorization are now unavailable to their owner.
• I am aware that in reality this is not our fault. Customers should know their darn billing address (the most common cause) and that Paypal should have some way of automatically issuing an auth void if a fraud filter is kicked off. We are seemingly at the mercy of stupidity on both ends.
We get calls all the time that someone is trying to buy groceries or that they are at the gas station and that they can't buy the things they need because "we have maxed out their card". I can't imagine we are the only company with this problem. Aside from this problem leaving a bad taste in a few customers' mouths, myself and my staff are left feeling like real jerks. Maybe this is just a problem created by Paypal, maybe not, but hopefully someone has the perfect answer to this long standing issue. Thanks
The scenario is as follows. Please keep in mind, for whatever reason, a lot of people don't seem to know the correct billing address of their card. 1) A customer places an order. 2) A request for authorization is sent through the Gateway to the card issuing bank. 3) Card Issuing bank accepts authorization and sends back to Gateway that the card is authorized for the funds requested. 4) Gateway - in our case Paypal Payflow Pro - takes the response from the card issuing bank and then "scrubs" (runs transaction through fraud filters) the transaction. 5) If billing address or something else is not right the Gateway returns to our cart that the transaction is declined by fraud services. However, the card issuing bank is left with an authorization. 6) (Let's pretend it is just a billing card address AVS issue) Customer calls us back after being emailed and we attempt to correct the billing address. This can sometimes take several attempts, but every time we make an attempt another authorization is left on the customers credit card trying up more and more funds for a period of time. 7) The customer calls us back mad as a wet cat that we have now "charged" their card 5 times and our customer service is then tied up trying to explain to the customer the difference between an authorization and a charge. They are then tied up further by customer requests for us to send something to their bank asking to immediately void the authorizations that were no good.
I just got off the phone with Paypal and their only answer was that there was no answer. I asked why they do not issue a void for the authorization at the time a fraud filter is tripped and they had no answer accept that they can't.
Things I know. Please read before answering
• We can send/fax/email a letter on our letter head requesting an immediate void of the bad authorizations. However, this ties up labor and leaves a bad taste in our customers' mouths. Not matter what we are still the bad guys.
• We can attempt to alter our AbleCart installation in some way (not sure if there is a setting or if this will require code customization?) so that when an authorization is requested it is only for $0.01 - $1.00. Then only tying up $0.01 - $1.00 rather than $54 (our average order value) each time we make an attempt. Later we can capture for the full amount of the order. However, now we are left with a maybe it will maybe it wont situation were the order has been pulled and packed, but the funds can't be captured. This is probably our best bet if no one has a better answer.
• I am very aware that the authorization will go away from 1 - 5 days depending on the card issuing bank. This is not acceptable customer care in my opinion as those funds for each authorization are now unavailable to their owner.
• I am aware that in reality this is not our fault. Customers should know their darn billing address (the most common cause) and that Paypal should have some way of automatically issuing an auth void if a fraud filter is kicked off. We are seemingly at the mercy of stupidity on both ends.
We get calls all the time that someone is trying to buy groceries or that they are at the gas station and that they can't buy the things they need because "we have maxed out their card". I can't imagine we are the only company with this problem. Aside from this problem leaving a bad taste in a few customers' mouths, myself and my staff are left feeling like real jerks. Maybe this is just a problem created by Paypal, maybe not, but hopefully someone has the perfect answer to this long standing issue. Thanks