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What is a CVV2 code? Is that the 3 digit number on the back of the card?
When doing online shopping I really feel most comfortable with sites that ask for not only the card number and 3 digit code, but your billing address as well. If all sites did this it would cut down greatly on fraud I think.
Whenever I go to a restaurant I always get a little nervous when the waiter takes my card away to pay the bill. I didn't worry with just my debit card but now that I am using more prestigious cards that imply being well off (Chase Mileage Plus explorer for one) I always fear a dishonest waiter will write down my expiration date, card number, and 3 digit code somewhere then try to use the card, if all sites required billing address for verification then nobody could use my card even if they copied all my info, unless they knew where I lived.
@Anonymous wrote:What is a CVV2 code? Is that the 3 digit number on the back of the card?
When doing online shopping I really feel most comfortable with sites that ask for not only the card number and 3 digit code, but your billing address as well. If all sites did this it would cut down greatly on fraud I think.
Whenever I go to a restaurant I always get a little nervous when the waiter takes my card away to pay the bill. I didn't worry with just my debit card but now that I am using more prestigious cards that imply being well off (Chase Mileage Plus explorer for one) I always fear a dishonest waiter will write down my expiration date, card number, and 3 digit code somewhere then try to use the card, if all sites required billing address for verification then nobody could use my card even if they copied all my info, unless they knew where I lived.
As long as you check your card activity fairly regularly, you should be able to spot anything unusual, and the dispute process is pretty simple in my experience. Fraud protection on credit cards is pretty good. You should feel less nervous with the credit card than you did using the debit card where the protection isn't as great.
@Walt_K wrote:
@Anonymous wrote:What is a CVV2 code? Is that the 3 digit number on the back of the card?
When doing online shopping I really feel most comfortable with sites that ask for not only the card number and 3 digit code, but your billing address as well. If all sites did this it would cut down greatly on fraud I think.
Whenever I go to a restaurant I always get a little nervous when the waiter takes my card away to pay the bill. I didn't worry with just my debit card but now that I am using more prestigious cards that imply being well off (Chase Mileage Plus explorer for one) I always fear a dishonest waiter will write down my expiration date, card number, and 3 digit code somewhere then try to use the card, if all sites required billing address for verification then nobody could use my card even if they copied all my info, unless they knew where I lived.
As long as you check your card activity fairly regularly, you should be able to spot anything unusual, and the dispute process is pretty simple in my experience. Fraud protection on credit cards is pretty good. You should feel less nervous with the credit card than you did using the debit card where the protection isn't as great.
+1
Yes, the CVV2 code is the 3 digit number on the back of Visa/MC cards. AMEX's is the 4 digit code in the front.
Walt_k, I realize that there is an established pattern, and I know why they did what they did.
It just seemed more logical to me that if the system thought anything was amiss, "better safe than sorry" and deny first, then ask questions later.
But then again, "logic" with these companies is sometimes otherworldly.
Edit:
On the other hand, my current "main" card is my Chase Freedom card, and I run absolutely everything through there.
Never had an issue, so I guess to them my pattern is just constant spending everywhere in the US, though usually online.
I have had worse where my card was fraud locked for making regular purchases locally and I had to spend a good chunk of time figuring out why since Bank of America didn't send me any notice, but I didn't sweat it. I settled the transactions in cash to lower the akwardness.
To explain it a little bit though...
You said you usually use PayPal. When you do this PayPal will convert the JPY to USD automatically (by default) and settle the transaction as if it originated in the US (this allows eBay/PayPal to make more money via the spread on what they sell you JPY for). Once you took PayPal out of the picture your transaction showed up as raw JPY. Foreign web based transactions always throw up red flags. Fraud complaints could also be very common from that seller (especially since they didn't request a CVV2) and played a major factor.
That being said, they will authorize first because it makes the situation better for you as the user. Instead of having a hard decline and then being asked to call them they can authorize, keep in mind an authorization is NOT an approval, the transaction and let you call them prior to the transaction settling. If that occurs you'll get your order shipped without any disruption, but the bank still has the option of cutting the transaction if you tell them it is fraud.
As I said earlier, an authorization is NOT an approval. Any authorized transactions have to be submitted for a real approval within a specified time frame. The charge is actually pushed through then and can be declined at that time.
@ComputerWizMaster wrote:You said you usually use PayPal. When you do this PayPal will convert the JPY to USD automatically (by default) and settle the transaction as if it originated in the US (this allows eBay/PayPal to make more money via the spread on what they sell you JPY for). Once you took PayPal out of the picture your transaction showed up as raw JPY. Foreign web based transactions always throw up red flags. Fraud complaints could also be very common from that seller (especially since they didn't request a CVV2) and played a major factor.
That being said, they will authorize first because it makes the situation better for you as the user. Instead of having a hard decline and then being asked to call them they can authorize, keep in mind an authorization is NOT an approval, the transaction and let you call them prior to the transaction settling. If that occurs you'll get your order shipped without any disruption, but the bank still has the option of cutting the transaction if you tell them it is fraud.
As I said earlier, an authorization is NOT an approval. Any authorized transactions have to be submitted for a real approval within a specified time frame. The charge is actually pushed through then and can be declined at that time.
Thanks for the explanation on the 2-step process.
I somehow already knew this, but had completely slipped my mind. You're right, authorizations usually result in a pending transaction that lasts for a few days before it gets "applied" to the account.
However, just a bit of clarification about my spending.
Yes, by default, PayPal will convert foreign currency to USD for convenience, among other things, such as them being greedy.
Because they are greedy though, they use very unfavorable rates. This was why I got the Capital One card to begin with, and as I said, every charge it's been given has been in JPY - not USD. I make sure to tell PayPal to charge my card in straight JPY without any conversion to USD.
Previously, I used my Chase Freedom, and was hit with the 3% foreign transaction fee, but I am certain it is still better than PayPal's highly unfavorable rates.
With the Capital One, I tell PayPal to send the raw JPY to the card, CapitalOne gives me a very good exchange rate (usually less than +/- 1 the USDJPY rate from xe.com) and no foreign transaction fee.
In either case, yes, removing PayPal probably did raise a flag, alongside the missing CVV2.
It went from PayPal charging JPY to CDJapan's gateway charging JPY.
Just wanted to chime in that I got a "possible fraudulent activity" e-mail from CapitalOne - I got charged (and credited) from Google, Match.com and Zoosk.com - So creepy to think someone's using my stolen credit card to scam other people they meet online!
After 20 minutes on the phone with the fraud department, I've got to wait a week for a replacement card. I am glad this happened on a credit card and not a debit card!!
I had a different experience with citi.
I used the citi card to place a ~$700 order online on tigerdirect.com for computer parts. The order did not go through. I logged on to my citi account and there was a notice asking me to call in. Called in and verify the transaction was initiated by me, then everything went ok. I don't remember if they sent me any email for fraud alert though.
I received a fraud alert from my Barclay Apple card when I started forwarding my automatic payments from Children's Book of the Month Club to them. I usually use it for iTunes, gas and lunch money, so I suppose that suddenly buying children's books seemed suspicious to them, haha.
Always call them about foreign charge. I ordered some parts from a Canadian website and I called Capital One in advance. Told them where the charge comes from and how much was the charge. Painless.
I love Capital One for the reason of no FTF.
"Previously, I used my Chase Freedom, and was hit with the 3% foreign transaction fee, but I am certain it is still better than PayPal's highly unfavorable rates.
With the Capital One, I tell PayPal to send the raw JPY to the card, CapitalOne gives me a very good exchange rate (usually less than +/- 1 the USDJPY rate from xe.com) and no foreign transaction fee."
Capital One does not set the exchange rate. Exchange rate is definied by Visa, MC, AMEX, and Discover respectively.