Chargeflow has introduced Chargeflow Prevent, a post-purchase, pre-fulfilment fraud prevention tool designed to prevent fraud before it happens.

Unlike traditional checkout fraud solutions that only screen at the payment point, Chargeflow Prevent extends the screening process, operating between the moment of payment and fulfillment. This approach addresses the blind spot where many fraudulent activities often slip through undetected.

Addressing Post-Purchase Fraud and Return Abuse

Friendly fraud is a significant concern for merchants, as it bypasses standard fraud detection tools. This type of fraud can lead to unnecessary product losses, shipping costs, revenue reduction, and increased chargeback rates. Post-purchase fraud and return abuse are evolving threats that exploit return policies, dispute mechanisms, or promotional offers after payment.

Chargeflow’s solution utilizes machine learning and a network of global merchants to assess order risk in real-time, helping retailers block credit card fraud, friendly fraud, and policy abuse. This can potentially cut down disputes by up to 90%. By using Prevent, merchants can identify and prevent fraudulent activities at the earliest stage, reducing operational inefficiencies, protecting relationships with payment processors, and enabling a focus on enhancing customer satisfaction.

Each order receives a risk score with recommendations to approve, verify, or cancel. For high-risk cases, the system automatically verifies both the order and buyer through a validation process, offering an additional layer of security without immediately blocking transactions. Instead, it alerts buyers that their actions have been flagged, often deterring friendly fraudsters from continuing their tactics. This approach helps protect merchants from financial losses while maintaining trust with genuine customers.

According to Chargeflow, Prevent is designed to stop digital shoplifters before they can cause damage and unites merchants in the battle against growing threats, ensuring that they can focus on serving genuine customers. The solution, supported by Chargeflow’s AI infrastructure, safeguards billions of annual GMV transactions and aligns with the company’s commitment to helping merchants resolve and avoid disputes.