New tool provides database of chargebacks and fraud

A new service called Chargeback File offers retailers access to a database of more than 5 million chargebacks and fraudulent transactions involving use of major credit cards or the PayPal online payment service. The service is designed to enable e-retailers to make better decisions on whether to accept suspicious orders.

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"It`s like the peace-of-mind you get by ordering a vehicle history report before buying a car, only simpler,” says Gwen Martinson, vice president of business development. “Now, merchants can use Chargeback File to instantly identify chargebacks and illegal activity from third-party billers, auction websites, and even message forums."

The service provides e-mail addresses, telephone numbers and user names employed on auction sites and online forums. Retailers pay $4.95 for up to 25 queries per month, or $29.95 for 500 queries per month.

Chargeback File was launched in 2007. More than half the entries in the database are from international transactions, the company says. A chargeback is a payment reversal that occurs when a consumer disputes a transaction.