Fraud prevention

Safetech fraud tools help you retain legitimate purchases while preventing fraudulent transactions by determining whether an account holder is a fraud risk. Checkout comes bundled with Safetech fraud screening.

Checkout automatically triggers fraud screening for your transactions.

How it works

When you send a payment transaction via Checkout, Safetech fraud automatically starts to screen it.
Safetech fraud uses the following information combined with machine learning for screening:
- Device data captured from the consumer's browser
- Payment information
- Shipping information
- Billing information
- Shopper information
- Payment history
If deemed high risk by the risk and fraud screening, your transaction is not sent to the issuer for processing.
You will get the result of the fraud check in your order notifications. Fraud check result can have the following status:

Fraud check status details
Fraud check status	Description
Approved (`FRAUD_CHECK_STATUS_APPROVED`)	Notifies you that no fraud was detected with the transaction.
Declined (`FRAUD_CHECK_STATUS_DECLINED`)	Notifies you that the transaction was declined due to it being fraudulent.
Unspecified (`FRAUD_CHECK_STATUS_UNSPECIFIED`)	Notifies you that fraud check was not performed. This occurs when the consumer opts out of fraud check or the payment details the consumer provides is invalid.

Note

You can to turn off Fraud screening for your transactions by toggling off the Fraud Check option, as well as customize the data to be collected by Checkout e.g. billing address, method of payment to be accepted, in the Checkout Settings on Commerce Center.

Fraud setup options

You can set up fraud prevention to be a hands-off solution or you can actively manage the setup giving you the ability to customize it.

Processor managed fraud solution

This is a streamlined hands-off fraud prevention solution for merchants who prefer not to manage fraud detection settings actively. This option uses a portfolio model and a single, comprehensive rule set, tailored to handle moderate-to-low transaction volume merchants.

Ideal For:

Small to mid-sized merchants, particularly in B2C verticals, who lack a dedicated fraud team and want a managed, low-maintenance solution.
Limited interest or resources for in-house fraud management.

Merchant managed fraud solution

This solution offers greater flexibility and customization to the merchants. Merchants can setup a custom fraud rules tailored to their business needs. This solution is designed for merchants who wish to manage fraud settings independently, have a dedicated fraud team, and want to take a hands-on approach to managing their fraud strategy.

Ideal For:

Large B2C and B2B merchants, especially those handling high-value transactions or with specialized fraud requirements.
High risk business like gaming, money transfer etc.
A fraud prevention team in place.
Interest in hands-on control over fraud strategy, including customization of risk settings and reporting.
Interest in having expert guidance and support from Chase Fraud Advisors.

Turning off device data for fraud screening

By default, Checkout will always collect the device data from the consumer's browser at the time of the transaction and use it for the purpose of fraud screening. However, there are special cases where it is recommended to not use device data since it may trigger false positives and lead to lowering your approval rate.

If your business model involves such use cases, then it is recommended that you indicate your preference to exclude device data as part of fraud screening. You can do this by setting checkoutOptions.fraudCheckOptions.ignoreDeviceData = true.

The following is an example of how you can exclude device data while creating a checkout session by setting ignoreDeviceData = true.

Method: POST

Endpoint: /checkout

Scenario: Creating a checkout session with ignore device data enabled.

Json

{
    "currencyCode": "USD",
    "merchantOrderNumber": "X1G5VZMxplIm1tRRcrC85o",
    "checkoutOptions": {
        "authorization": {
            "authorizationType": "AUTH_METHOD_CART_AMOUNT"
        },
        "capture": {
            "captureMethod": "CAPTURE_METHOD_MANUAL"
        },
        "fraudCheckOptions": {
            "ignoreDeviceData": true,
            "consumerCreateTimestamp": "2024-04-06T01:14:36.500Z"
        }
    },
    "cart": {
        "totalTransactionAmount": 1000
    }
}

Response: