When Fraud Detection Shuts Down Credit Cards Inappropriately

reifman writes: On Sunday, Capital One declined a $280 travel reservation I charged at India-based ClearTrip.com and immediately shut off my card for all transactions until I contacted them by phone. It wasn't the first time that CapitalOne had shut off my card after a single suspect transaction. But, I'd actually purchased from ClearTrip.com using my CapitalOne card on two prior occasions. It was an example of very poor fraud detection and led me on a tour of their pathetic customer service. The banks want to cut their losses regardless of how it impacts their customers. Having had my own credit card suspended out of an abundance of caution on a different credit card issuer's part (for legitimate charges), but having recently had some widely known scam charges get accepted, the fraud protection algorithms that the credit companies use certainly seem inscrutable sometimes, and so do the surrounding practices about communicating with customers. How would you like it to work instead?

Comments

This is why you call your bank before tourism

[GoodNewsJimDotCom]

If you're going to make out of the ordinary purchases for overseas, or travel overseas, you always want to call your bank ahead of time. This is a standard operating procedure, and nothing to complain about on Slashdot.

Re:This is why you call your bank before tourism

[driblio]

They process billions of transactions a day. Thousands of them are fraudulent. Occasionally they get some wrong. But they do an amazing job - which is why you very rarely find out about fraud for the first time when it shows up on your bill. Most of the time, you never know about it at all. It is far from 'completely broken'.

Re:This is why you call your bank before tourism

[Martin Blank]

Both of my frequent flier-linked cards have expressly said that there is no need to call and notify them. It doesn't really change much aside from them adding a note to the account which may or may not be read by the fraud investigator--if there is one. Every time my cards have been blocked, it's completely automated, and the programs aren't likely to examine notes left in the account.

Use cash.

[Anonymous Coward]

Use cash.

Seriously. I remember when we could get on a flight, sit down, then have a purser come by and pay in cash for the flight.

OTOH, I let 2 of my credit card companies know where I'll be traveling - they have an online tool for that. Amex seems to figure it out, though I've had 3 different CC refused because they weren't chip-n-pin in Turkey (away from tourist areas). It was embarrassing to take 12 people to a business dinner at a nice restaurant and not be able to pay. Amex, Visa, MC all were refused. I made a stink about this to the MC company and 8 months later, I was part of their early test group. Also got screwed in Amsterdam having to wait in line to get a train ticket from the airport because non-chip-n-pin CCs weren't allowed at the train kiosks. 10 line. Should have just gotten on for free - nobody seems to check for tickets into town.

Also remember traveling around Japan before they started accepting CCards anywhere. Cash was it. It was a hassle to carry the equiv of US$1000 to be able to pay for hotels, but necessary.

Was in Seoul a few years ago - the subway token machines only accepted cash, but a cash machine was available about 50ft away. Got the feeling they didn't want to be accused of tracking riders by name. I dunno.

I still use cash whenever it makes sense for trivial purchases under US$50 - except in transfer airports when I don't have any local currency. That $3 cup of coffee while waiting for a connecting flight just isn't worth it. Also feel bad tipping in USD, but sometimes that is the difference for the bellboy - $0 or US$5.