Protect your business from payment fraud

Fraudsters use your personal and banking information to make online transactions, claim to find issues with their purchases and act as a victim of fraud to request a refund from your business. Your business is often on the hook to cover a fraudulent refund. Understanding how payment fraud happens is key to keeping your business safe.

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What you need to know

Protect your business and customers by storing information on a secure site.
Update your network security systems often. Partner with verified payment processors to secure point-of-sale transactions.
Stay up to date with the latest fraud trends. Be proactive and educate yourself about how to prevent payment fraud from happening.

What's payment fraud?

This refers to any illegal online transaction by fraudsters or customers. Fraudsters use a victim’s personal and banking information to make online transactions. Customers pretend to be a victim of fraud or have issues with their purchases to get their money back. Payment fraud affects your business negatively, whether it's fraudsters or customers that do it.

Recognize the types of payment fraud

Unauthorized transactions

Fraudsters use a variety of scams and tactics to steal personal and banking information to make fraudulent online purchases.

Payment interception

Fraudsters intercept a transaction in the middle of the sales process. They change bank account information to receive payment or products and services.

Friendly fraud transactions

Clients make claims about a product to get their money back. This usually occurs when they order items from a business with their own banking information. When the client receives their order, they call their bank stating the transaction was unauthorized or they contact your business saying their order was lost or damaged.

Fake returns

Fraudsters request a refund and say they've returned the item, but the vendor doesn't receive it. Sometimes, fraudsters may send one item back but claim there were more contents in the package and demand a full refund.

Stay safe with our tips

Be upfront about your return policies to avoid any unauthorized refunds
Work with a verified payment processor to collect and analyze data
Provide a secure e-commerce platform where customers can create an account and log in to make purchases
Use a multi-factor client authentication system for a strong and secure experience
Keep your networks secure and regularly update your network security systems
Use strong passwords that are long and complex to protect accounts and information
Monitor and verify all important information during a transaction, such as the shipping address, IP address, date and amount
Invest in a strong fraud management strategy that involves a comprehensive approach that uses fraud prevention tools

Notice anything suspicious? Let us know

Report fraud

Explore more about payment fraud

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