Fraud prevention for merchants: protect the payments with tools from Covery

Fraud prevention for merchants: protect the payments with tools from Covery

Credit card payment fraud: a threat that is always there

Merchants’ efforts in fraud prevention are vital not only to avoid chargebacks but to keep your reputation spotless. Unfortunately, detecting fraud isn’t easy, especially if you accept payments for your products and services online. 

Scammers come up with more and more sophisticated schemes to steal the customer’s financial data and money. In the US, 2020 started with financial fraud complaints reaching over 104%, compared to the first quarter of 2019. 

And a recent study revealed, that in 2019 Europeans have lost 1.55 billion euros to card fraud, with Great Britain’s card fraud value amounted to 706.9 million euros. 

Payment fraud: how do you identify it?

With all these unfortunate statistics, how can merchants recognize and stop fraudulent transactions? There are some tips:

  • Keep an eye on the customer’s data. If there are inconsistencies like unmatching ZIP code and location fields, the transaction is suspicious. If it comes to regular clients, the consistency of their location matters as well, and if it suddenly changes drastically (i.e., France to Brazil), then there can be an issue.
  • Too many orders too fast. Be cautious, if a regular customer orders an unusually large number of products and/or orders ship to many different countries;
  • Frequent mistakes when making a purchase. If a customer can’t correctly enter their financial data to complete the transaction three or more times in a row, it’s a reason for concern. 

These are some of the basic tips for analyzing metrics that are easy to track, but there are far too many other risk factors to take into account. Thus, merchants should consider finding professionals that can help with risk management. Covery uses its multi-tasking tools to uncover any risks and prevent fraud.

Fraud protection and risk management – Covery does it all

Covery anti-fraud platform has all the risk management services necessary to provide a fraud-free environment for both low-risk and high-risk businesses. Developed by Maxpay’s specialists in 2016 as a risk assessment platform, this year Covery got into the list of the top Fraud Solution Providers

The platform offers a plethora of tools merchants can find crucial – from chargeback protection and fraud prevention to risk management. With Covery, Maxpay’s clients get:

  • The checking of SEPA, SWIFT, e-wallet, and other payments. Payouts and refund checkups. 
  • A set of restriction rules, so you can’t get payments from the list of prohibited countries, card brands, specific BINs, etc.
  • Trustchain – a collaborative reputation network, which has over 300 million reputation records, using which, Covery customers can recognize 40% more bot attacks.
  • The velocity rules, which allow creating both static and dynamic limits for the card, user, and device.
  • The services are completely automatized, with manual reviews and post-reviews of the decision available when you need it. 

Covery recognizes and works with as many risk management aspects as possible so that merchants have a full range of instruments for fraud detection. Feel free to contact us at for additional information about our services.

Fraud and chargeback prevention: additional tools

Need to add a stronger layer of chargeback protection to secure your transactions? Find out how to reduce chargebacks related to friendly fraud with VMPI solutions, or how to detect chargebacks the same day they occur with Ethoca Alerts in Maxpay’s blog.