How to block a delivery address? Fraudulent Activity!

[ptfairfax]

Despite our proactive measures to identify and block this individual due to four outstanding disputes related to deliveries at the same address, they have continued to place orders using different names and credit card information. This has hindered our ability to effectively block their transactions. I have established risk management rules for AVS, CVV, and 3DS.

I have read in a forum that other merchants are experiencing similar fraudulent activity, and some have recommended implementing 3DS. Reference forum: Solved: I have an issue with someone using stolen credit c... - The Seller Community.

I do have some concerns about the possible impact of 3DS on sales. There could be a decrease in payment completions based on how the card issuer handles the 3D Secure verification process. If the experience is user-friendly, customers may proceed without hesitation. However, if it proves to be confusing, we risk potential cart abandonment/loss of sale. Additionally, we might see an increase in declines from issuers.

Should I remove the 3DS and just keep the AVS and CVV?

Is there a way to block orders for delivery or any orders placed from a specific address? 

As a small family business, we are deeply affected by the ongoing disputes related to this customer. We want to emphasize that we have taken every precaution to identify and block this individual due to prior issues by going to previous transactions but it's not effective if they keep using different names, ip address, emails and phone numbers and credit card number each time. 

Any insight or help is greatly appreciated 

[ptfairfax]

We are dealing with an individual or group that repeatedly makes fraudulent purchases online to the same address. The cardholder has been disputing these transactions consistently. They continue to place orders using different names and credit card information, making it difficult for us to track and block them.

I’ve read on a forum that other merchants are experiencing similar fraudulent activity. Is there a way to block orders for delivery or any purchases made from a specific address?

As a small family business, we are severely impacted by the ongoing disputes related to this customer. We have taken every precaution to identify and block this individual based on past transactions, including phone numbers, email addresses, the last four digits of card numbers, and names.

Unfortunately, these measures have been ineffective as they change their information each time. We urge you to add a feature that allows us to block these orders (via address), as we are losing money due to these individuals intentionally committing fraud.

[RobynR · Accepted solution]

Hey @ptfairfax , welcome to the Community, and thanks for sharing your concerns.

While Square doesn’t currently offer a way to block orders based solely on a specific delivery address, you can use Square Risk Manager tools to reduce fraudulent activity:

1. Block Lists: Block suspicious email addresses, payment cards, and IP addresses.
2. 3D Secure (3DS): Adds an extra layer of authentication during checkout.
3. AVS & CVV Rules: Validate payment details more effectively.

When to use AVS/CVV vs. 3DS:

• AVS & CVV: Best for standard fraud prevention across all transactions.
• 3DS: Ideal for high-value orders or when you're seeing repeated fraud attempts from specific customers.

For detailed steps, check these articles:

• Set Up Your Block List with Risk Manager
• Use 3D Secure with Square Risk Manager

While 3DS can sometimes impact payment completions, it’s a powerful tool for preventing fraud. If you're seeing significant issues, consider adjusting your Risk Manager settings.

I know how challenging this can be, and I'm here to help—let me know if you have more questions!

[ptfairfax]

Thank you for your response and suggestions. I’ve noticed that many transactions are being declined with a CVV Unavailable status, so we’ve decided to proceed with CVV Invalid instead.

Regarding 3DS, I’m concerned that if a customer is unable to authenticate due to common issues—like forgetting their password—the transaction will simply be declined. Not all customers are familiar with the 3DS process, and this could lead to higher abandonment rates.

I do appreciate the chargeback protection that 3DS offers, especially since it shifts liability to the card-issuing bank for transactions that are authenticated. However, I’m wondering: do all card-issuing banks support 3DS, and do older cards typically support it as well?

Looking forward to your thoughts!