Foundation · 3 min
What you need to know
What is ecommerce payment fraud?
Payment fraud involves deception intended to obtain goods, money or account access through a payment or related transaction. Protect orders with appropriate checks and review evidence. A risk flag indicates something to investigate, not a confirmed accusation.
What are common types of ecommerce fraud?
Examples include stolen-card purchases, takeover of customer accounts, fraudulent refund requests and abuse of offers. Legitimate mistakes can look similar at first. Classify the incident from payment and order evidence before choosing a response.
How do I identify potentially fraudulent orders?
Review combinations of signals from the provider and the order, such as unusual purchasing behaviour and repeated payment failures. Compare them with ordinary store activity. Use a documented review process rather than cancelling every unfamiliar order.
What is card-not-present fraud?
Card-not-present fraud is unauthorised card use where the physical card is not presented, as in an online purchase. Supported authentication and risk controls can reduce exposure, but successful processing does not guarantee a transaction cannot later be disputed.
What is account takeover fraud?
Account takeover happens when someone gains unauthorised access to a customer or merchant account. They may misuse saved payment access or change delivery details. Protect logins and review suspicious account changes as well as the payment itself.
What is refund fraud?
Refund fraud involves dishonest attempts to obtain money or credit, such as falsely claiming a return or requesting duplicate reimbursement. Match the request to the original order, returned goods and previous refunds. Do not withhold legitimate refunds just because a request is unusual.
What is promo-code abuse?
Promo-code abuse is use of an offer in ways that violate its actual terms, such as repeatedly claiming an offer intended for one use. Make eligibility clear and apply consistent controls. Ordinary use of a valid published coupon is not fraud.
How should high-risk orders be handled?
Pause dispatch where appropriate, review the provider’s signals and confirm the order through an established process. Record the decision and time limit for review. Do not ask a buyer to email card photos, full card numbers or verification codes.
Foundation · 2 min
Frequently asked questions
Should suspicious orders be automatically cancelled?
Not always. A strong supported rule may justify a block, while an uncertain signal may call for review. The correct action depends on the payment state and risk process; an order cancellation alone does not undo a collected payment.
When should an order be manually reviewed?
Manual review is useful when the available signals conflict or the consequence of a wrong decision is significant. Give staff clear evidence to check and permitted actions. Review backlogs should not leave customers or authorised funds waiting indefinitely.