How does Google Checkout protect against fraud?
Google Checkout takes several steps to protect both the Buyer and Seller against fraud: 1) payments are verified before the Seller is instructed to ship, 2) ensuring that Seller shipped and the Buyer received the vehicle, and 3) it gives the Buyer the option to return the vehicle before payment is released to the Seller.
According to Google’s support they help Google Checkout merchants prevent and really combat fraud by having:
- Automatic Fraud Detection. (of course just about everybody in the big leagues has this). Google uses advanced risk modeling algorithms to basically detect fraud. They also use external blacklist and other typical industry techniquest to prevent fraud.
- Payment Guaranteed Policy – This offers guaranteed reimbursement for unwarranted chargebacks on "eligible" (that’s the keyword here…) transactions.
- Chargeback Resolution Policy. This is available to all merchants and all transactions where Google will evaluate all chargebacks on your behalf.
- Buyer information sharing. They provide you with buyer verification information which just lets you be able to review your orders and who in theory is really buying them where you could cancel the order if you think it is high risk. They have verification checks such as Address Verification (compares buyers billing address with legitimate address credit card issuer has), Card Verification Value (this is that CVV value on the back), and Account Age (this shows how long the account has been able to make purchases through Google Wallet)
*Most of this is just my take on what they provided here at their support section and what I’ve heard from Google Checkout Merchants. http://support.google.com/checkout/sell/bin/topic.py?hl=en&topic=8666&parent=TopLevel&ctx=topic
