What does Intentional Fraud mean?
Intentional fraud refers to situations where a credit card is used without the knowledge or permission of the cardholder, typically because the card has been lost or stolen. The individual using the card intends to fraudulently obtain goods, services, or funds.
What Happens in a Case of Intentional Fraud?
- A fraudster makes a purchase using someone else's credit card.
- The actual cardholder later reviews their statement and notices an unauthorized charge.
- The cardholder reports the charge to their bank or card issuer as fraud.
- A chargeback is issued to your business, and funds are withdrawn.
Can ChargePay Fight These Disputes?
Yes, ChargePay will submit a dispute response even in cases flagged as intentional fraud. However, these disputes typically have a lower win probability because:
- The cardholder’s claim is legitimate.
- The transaction was unauthorized.
Why It Matters
Even though win rates are low, responding to intentional fraud chargebacks helps maintain your merchant reputation and shows a consistent dispute handling process.
ChargePay helps you:
- Respond with available transaction metadata
- Identify recurring patterns of fraud
- Monitor fraud rates through your dashboard analytics
For prevention tips or more insight into reducing fraud exposure, reach out to support@chargepay.ai.
Updated on: 15/06/2025
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