Fintech Insights

Chargeback and credit card fraud warning signs


July 21, 2019

Be aware of the warning signs

Be aware of how customers when they are shopping. If you notice anything out of the ordinary, or something that just doesn’t feel right, it could be a sign of potential fraud, so act on your instincts and don’t go ahead if you are suspicious. Here are some tips to look out for in different payment situations.

Face-to Face warning signs of fraud

Splitting payments


Could indicate the customer is trying to avoid authorization for the full amount.

To help avoid the risk of a chargeback always ensure you accept the full payment amount on one card.

PAN/ manual keying


Payments should always be made using Chip & PIN where possible, unless the card payment terminal prompts you to manually key the transactions.

If manual keying is necessary then you must obtain a manual imprint of the card on a paper voucher, and also write on it ‘no value swipe failure’ and the cardholder must sign both the paper voucher and the cardholder receipt.

A customer requesting for their card to be manually keyed could indicate a suspicious transaction.

Declined transactions


Be aware of declined payments, especially if a customer’s PIN is declined numerous times or they attempt several cards to process a payment.

On average customers hold no more than three different payment cards in their wallet, so presenting more could be unusual activity.

Mail and telephone order

First-time customers who place multiple orders


The risk of fraud tends to be much smaller with customers you already know.

Hesitant customers


Customers who seem uncertain about personal information , such as their post code or spelling of their name or street, could be using a false identity.

High value orders


One off orders larger than normal may indicate fraud. High-value items such as jewellery or electrical goods are often targeted by fraudsters because they are easier to re sell.

Multiple or bulk orders


Be vigilant for customers buying lots of the same item – either in the same transaction or separately.

Sales that are too easy


Be suspicious if a customer is not interested in the price and / or detailed description of the goods, but is only interested in delivery times.

Online Payments

Fraud prevention tools


Add an extra layer of security to your online store with industry fraud prevention tools like Cardholder Authentication, 3D secure (Mastercard SecureCode, Mastercard Identity Check, Verified by Visa and American Express Safekey).

Product photography and description


Make sure your goods match the images and description displayed on your website. It may sound simple, but this simple step can sometimes be overlooked.


Chargeback process guide

Need help understanding the chargeback process?