PayXpert - User documentation
Frauds
Fraud notifications alert merchants to potentially suspicious or fraudulent activity on a payment, helping to prevent financial losses and protect both merchants and cardholders. At Payxpert, we take all necessary measures to safeguard transactions and mitigate risk. As part of these efforts, we maintain a global blacklist to protect all our merchants from known fraudulent activity. Any consumer whose credit card number - or other flagged parameter - appears on the blacklist will be prevented from completing the transaction, which will be automatically declined.
A Fraud notification on a payment is a specific type of fraud report used by payment schemes to alert acquirers and merchants about potentially fraudulent transactions. When a cardholder reports suspected fraud to their issuing bank, the bank may generate a Fraud notification, which is then submitted to the card network.
Unlike a chargeback, a Fraud notification does not reverse funds or initiate a refund. Instead, it serves as an early warning, allowing merchants to take preventive action - such as blocking the card or flagging the account - to reduce the risk of future fraudulent transactions. It is primarily a risk management tool used to protect both merchants and cardholders from fraud.
It’s important to note that a fraud notification is not a chargeback and cannot be “defended” in the traditional sense. It also does not automatically lead to a chargeback - the issuing bank decides whether to initiate a formal dispute.
Like chargebacks, fraud alerts have the same Transaction ID as their original sale/rebill/capture operation:
Fraud transactions share the same Transaction ID as the associated rebill. While a fraud alert does not always lead to a chargeback, if a chargeback occurs - as in this case - it will also use the same Transaction ID.
Every fraud notification received from acquirers is recorded and displayed in the dedicated Frauds section under the Risk tab in the Backoffice.
Merchants can review fraud alert details (including shopper details and any transactions related to the fraudulent activity, if available) to determine whether to blacklist the shopper’s parameters, ensuring that future transactions using the same card number, email, or IP address are blocked.
We encourage merchants to monitor your transactions daily, if possible, and blacklist any suspicious credit cards, emails, or IP addresses you may see. See the related articles linked below for instructions.
Please note that we also reserve the right to (globally) blacklist any shoppers that we see are affecting our merchants, on their behalf. This is to protect everyone involved.
Understanding fraud alerts
Merchants can find out more about the fraud alert details by clicking View button in the Actions column for a particular fraud alert:
In the window that appears, the Main information tab gives you the sequence of events for this fraud alert:
The Related Transactions tab indicates whether a chargeback has been received for the reviewed transaction as a result of the fraud notification. Please bear in mind that chargebacks and fraud notifications are often not received at the same time; hence, there might be occasions when the chargeback information is delayed and uploaded to the Backoffice at a later date:
As mentioned in the chargebacks section, issuing a refund for transactions which already received chargebacks notification is not recommended. This action will not cancel/stop the chargeback and may result in the cardholder receiving funds twice - once from the chargeback process and once from the refund. We however recommend that the details of a transaction marked as fraudulent are blacklisted in merchant systems and where possible services/goods delivery stopped.