What are the best practices to avoid fraudulent chargebacks?
Fraudulent payment behavior
- Understand fraudulent shopper patterns and refuse payments actively. For more information how to detect/block these users, please see details on Adyen’s RevenueProtect risk engine.
- 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
Verify the shopper
- Contact and verify the shopper before shipping the goods (recommend for high value orders)
- Actively use Address Verification Service to verify the shoppers billing address
- Change of shipping address (especially to pick up locations) can be suspicious shopper behavior. Always verify the shopper before shipping the goods
- Enable 3DS
- Proactively review suspicious transactions and reach out to you customers to take additional verification measures. For more information on manual review, please see details on Case Management.
- Don’t do partial refunds on payments with Notification Of Fraud
- Don’t exercise a refund (using the refund API) when the payment is already charged back