How can I avoid fraudulent chargebacks?

The most effective solution against fraudulent chargebacks (on E-commerce transactions) is 3D Secure.

If you are not choosing to enable 3DS, we recommend to understand fraudulent shopper patterns and refuse payments actively. For more information on how to detect and block these users, please see details on our RevenueProtect risk engine. 

Next to detecting fraud patterns, you can also set a capture delay on an authorized payment (not to exceed 7 days from the authorization date) and, if a Notification of Fraud is received, cancel the capture.

Within the capture delay period, you can verify the shopper by taking the following steps:

  • Contact and verify the shopper before shipping the goods (recommended for high value orders)
  • Use Address Verification System to verify the shoppers billing address
  • Change of shipping address (especially to pick up locations) can be suspicious shopper behavior 

Another option is to review transactions using Case management. Case management allows you to manually review suspicious transactions before they are being captured.

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