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

Refund actively

  • 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
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