Fraud Policy Update

Fraud Policy Update

We are experiencing a significant increase in chargeback activity from a small percentage of our vendors. These orders are being placed with completely valid credit card information and as such are very hard to detect.

In order to deal with this we are going to start monitoring chargeback activity on a per-vendor basis and if the chargeback rate reaches 5% we will automatically convert the account to “Review” status. Review status means that orders are queued and manually reviewed by a BMT sales rep prior to being completed. If the chargeback rate rises to 15% we will close the account and freeze the funds pending an audit of sales to verify authenticity.

As I said, this applies to a very small percentage of our client base – in fact, I can’t think of a business software or game developer that this would affect. We basically just need a formal policy in place in order to get a handle on the situation.

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