Fraud Notification

Fraud Notification is an alert initiated by an issuing bank to merchants when a transaction raises suspicion of potential fraudulent activity. It serves as an early warning, indicating that the cardholder’s account or card details may have been compromised or used illegitimately. Fraud Notification is an early intervention mechanism, prompting businesses to investigate, communicate, and take preventative actions against potential fraudulent transactions.

Upon receiving such a notification, merchants should promptly contact the customer to verify the transaction’s legitimacy. If the transaction is confirmed as fraudulent, the merchant should issue a refund to the customer to mitigate the risk of a subsequent chargeback being filed. By addressing Fraud Notifications proactively, merchants can safeguard their business from financial losses, protect their reputation, and maintain a secure payment ecosystem.