What is fraud?
A transaction is fraudulent when the cardholder has not authorized the charge. Most fraudulent transactions are made using stolen credit cards or card numbers. Often, a fraudulent transactions will be disputed by the real owner of the credit card (after being notified that the charge was made or reviewing a credit card statement). Cardholders typically call their bank and the bank will issue a chargeback.
What tools does Midtrans provide to help with fraud?
Midtrans uses Fraud Detection System (FDS) to monitor every transactions from odd behavior. We will flag a strange transaction as challenge transaction and will give a reason to merchant.
Fraud is an unfortunate part of accepting payments online, but disputes tend to be pretty rare—well under 1% of the total charges on an account. Should we ever see a higher dispute rate, or a significant increase in potentially fraudulent activity, we’ll reach out proactively to see how we can help.