Managing Potential Fraud Alerts

Zoho Payments sends you warnings received from card networks called Potential Fraud Alerts that a payment could be fraudulent or unauthorized. This allows you to verify the payment and take necessary measures to prevent a dispute.

How This Works

When cardholders suspect unauthorized activity on their card, they notify their issuing bank. The bank then investigates the issue and when they notify the payment processor, they’re triggered as Potential Fraud Alerts in Zoho Payments.  These help you take proactive measures and resolve this with the cardholder.

The following are some reasons why a potential fraud alert gets triggered:

• The payment was made using a counterfeit card.
• The payment was made using a card that was reported as lost.
• The payment was made using a card that was reported as stolen.
• The payment was made using a card without authorization.
• The payment was made using a card that could be fraudulent.

View Fraud Alerts

Once a payment is processed and the customer has reported it, Zoho Payments will promptly notify you with a potential fraud alert. You will receive an email notification and  an alert in the Payments module. This allows you to gain visibility into the transaction and make informed decisions.

Email Notifications

The email notification will include relevant details, such as the payment information (Date, ID, and Amount), customer details (Name and Email), and why it is flagged as potentially fraudulent. You will be redirected to the payment from the email to view all details in the app.

Payments Module

You can find these potential fraud alerts in the list page of the Payments module.

• Go to the Payments module.

• Go to the Potential Fraud Alerts tab to view only those flagged as fraudulent.

  

• Click the payment to view the payment details and take the required actions.

  

Respond to Fraud Alerts

When you’ve received a fraud alert, it is recommended that you respond immediately, as almost all payments that receive a potential fraud alert convert to a dispute.

What can you do when your payment has received an alert?

1. Review the transaction:

Review the details of the transaction or order. Though not definitive, see if the transaction amount is unusual, the shipping address is incorrect, or there’s a difference between the billing and shipping information. You can also assess the risk associated with the transaction by viewing the risk assessment in each transaction.

2. Talk to the customer:

Review the customer’s details and contact them directly. You can see their previous orders, and check if this is a similar or unusual transaction. Contact the customer directly before you process the order to see if they’ve made the payment to avoid the uncertainity.

3. Evaluate the risk:

If you’ve received an alert, view the risk involved. Sometimes the payment amounts can be low, but if that converts to a dispute the costs involved might be higher (the dispute fee, challenging the dispute, and so on). So, it’s better to cancel and refund the order.

4. Cancel and refund the order:

If the purchased item is yet to be shipped or delivered, or if you are yet to provide the service, you can try to cancel the transaction and issue a refund immediately. Learn how to issue a refund

Taking such preventive measures allows you to prevent any disputes and losses for your business.