Preventing fraud on Stripe

As you know I had a bad experience with Stripe in the past, well not only me…

I’ve decided to give a third chance since I need a payment processor and honestly they have one of the best APIs, after following an intensive research of anti fraud systems for payment gateways here are my conclusions.

My requirements

Clean API and with examples in PHP
Cheap entry point / free service
Affordable on long term
Custom rules
Good support

What I found

http://www.neustar.biz/resources/resource-category?category=fraud_detection
https://www.signifyd.com/pricing
http://www.fraudlabspro.com/
https://www.maxmind.com/en/minfraud-services
https://siftscience.com/
http://www.riskified.com/
http://www.kount.com/

My Choice

I choose FraudLabsPro, since it’s easy to use, free, cheap, and has examples. So far not disappointed at all.

Integration Example

The guys from fraudlabs already have a full example to integrate Stripe on your PHP, but this is how I did it:

My Rules

This are the rules that I am currently using. As you can see I do not review transactions I reject them directly. What I do is that if user gets rejected I redirect him to another payment method, for example paypal or bank transfer. And I wont display to him any more the Stripe button.

Results

I am only using Stripe on Yclas.com and we do not have many clients yet and we offer Paypal as payment (3x times more sales on paypal), but I’ve been tweaking the rules over time depending on results. Last 5 months transactions and not any refund, fraud etc..

Security on Stripe

There’s few security stuff you can enable on Stripe’s side, and I guess they will improve it over time, enable them to add extra security.

Activate the CVC (card verification code) validation on your settings
On stripe API activate the address validation. AVS (address verification system)
```
data-address = "TRUE"
```