Alipay's assistance in fraud control
As per the default settings, you can either make anti-fraud decisions independently or leverage third-party fraud prevention services. Alipay provides a 3D-secure tool to facilitate transactions where you choose 3DS verification.
Alipay will help you monitor fraud and chargeback rates, and send alerts when they approach the threshold of the card scheme program. A risk control specialist will help you understand the card scheme program, and propose a feasible plan to avoid further loss. In case of being picked up by the Standard/Excessive program, we can help you to prepare a remedy plan request by the card scheme.
In addition, Alipay also provides a value-added service called “Premium Risk Solution”, which is a combination of our 10-year experience and industry-leading technology. It provides real-time decisioning with dynamic 3DS, to find a balance between fraud loss and approval rate. If you are interested, contact BD or account manager, so we can analyze your situation and tailor a solution for you.
The following fraud-prevention steps are industry best practices for online merchants. It is important for you to take proactive steps to detect and prevent fraud. The best practices can be implemented individually or in conjunction with other indicators.
Be cautious of unusual transactions
Unusual transactions such as large order quantities and high frequency of placing orders are a warning sign of fraudsters using stolen cards to make fraudulent purchases. To lessen the possibility of fraudulent activities, monitor and analyze previous sales data to understand your normal sales each day, recognize any unusual or sudden changes in the transactions and block orders that supersede this volume or frequency.
Employ geolocation technology and verification tools
When a customer's billing, shipping, or card details do not match properly, it could be an indication of fraud. Check the geolocation by IP address to understand the user’s precise location (country) and compare it with the billing address (country) to identify any discrepancy. Ensure that the country of the card issuer matches the billing address country. Also, verify if orders are being shipped to high-risk international locations known for credit card fraud. Employ geolocation technology and use a Card Verification Number and Address Verification System to detect those suspicious orders and subject them to a manual review.
Collect proof of delivery
Work with trusted shipping carriers that provide proof of delivery to avoid customers’ illegitimate claims of unreceived orders.
Build your own blocklist
Build a customer blocklist that contains names, credit card numbers, IP addresses, and shipping addresses known to be fraud risks. Any newly placed orders with information that matches the blocklist can be blocked.