After long talks with paypal, we are now securing the payments with a rolling reserve on our account. That is hurting us a bit and we might need to introduce the same process here on tradebit for the merchants:
A rolling reserve is a certain amount of money, that will stay in your account for a certain amount of time and will then be paid in a normal payout process. Normally something like 10% of the daily revenue is reserved for such a security measure. We are currently evaluating, if that measure would help us to maintain a clean and good business on tradebit. Over and over again, people try to game the system and our security measures became better - yet I am not happy with a 2-3% fraud rate from the merchant side. Some products are just uploaded to trick people and we will continue to fight that.
If we need to come up with a change, it will be published here. The next few days our monitoring system will flag files a bit harder and we will see, if that game continues. After that, paypal will take a stronger role in fraud protection together with us and we are working on a tighter API integration with them and reported various IP numbers of the people in the last weeks.
The shameless abuse of other peoples credit cards is becoming a global threat: How criminals steal credit cards - and I just wanted to add to that article: the guy is not a hacker - hackers are gaming the systems for non-profit use. This guy is a plain thief and the press is doing no good to call him a hacker!
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