Fraud protection


Eliminate international fraud

Explore how Zonos technology eliminates international fraud.

Zonos fraud coverage is a comprehensive solution designed for businesses eager to expand globally. It drastically reduces time spent monitoring potential fraudulent orders and helps accurately approve valid new orders.

Our fraud coverage service comes as an integral part of Zonos Checkout. All transactions are automatically assessed for credibility at the time of purchase, effectively reducing the risk of unauthorized chargebacks.

A common misstep online retailers take when countering fraud is the application of broad preventive measures, such as blocking IP addresses for entire regions or insisting on wire transfers for payment. While this approach does reduce fraud, it simultaneously hampers genuine buyers from completing purchases, negatively impacting your conversion rates and overall revenue.

Zonos takes a different approach. Our fraud coverage targets, identifies, and blocks individual fraudsters rather than implementing broad-stroke policies that affect legitimate customers. Its design navigates the complex terrain of international fraud, often presenting more nuanced challenges than domestic fraud.

Such nuances may include:

  • Billing to a foreign address
  • Shipping within the United States
  • High-order values or quantities

Although these circumstances may initially raise alarms, in many cases, they shouldn't. International buyers often order in larger quantities to justify higher shipping costs and frequently ship to freight forwarders within the US.

Fraud Screening Variables 

Zonos evaluates a comprehensive list of variables when determining order credibility and whether additional screening is necessary. These variables include:

  • Quantity and value of individual items
  • Total order value
  • Billing and shipping addresses
  • Shopper's IP address
  • Text case within form fields
  • Previous fraudulent orders linked to customer data
  • Number of payment attempts and methods
  • Bank BIN, AVS Codes, and 3-D Secure codes

Understanding 3D Secure 

3D Secure is an additional layer of security implemented at checkout. It involves verifying the cardholder's identity through unique information known only to them or a pre-established password. However, it's important to note that not all banks participate in the 3D Secure program.

Should 3D Secure authentication fail, the associated order may not process successfully, or it could land in Zonos' review queue for further scrutiny. For some merchants, especially those with low-risk profiles, 3D Secure authentication may be optional.

Orders authenticated with 3D Secure are usually approved since liability for any unauthorized chargeback is transferred to the bank. However, it's possible for orders that exhibit strong indications of fraud to be approved due to a successful 3D Secure authentication.

Frequently asked questions 

Is Zonos fraud coverage included in Checkout?

Yes, fraud coverage is an integral feature of Zonos Checkout. For more information, please contact us directly.

How long does a cardholder have to open a dispute?

Cardholders can open disputes within:

  • 180 days for PayPal accounts
  • 75-120 days for Credit cards

Exceptions can be made by PayPal and credit card issuers.

What if a customer notifies Zonos that a cardholder reported a 3D Secure authenticated transaction as fraudulent?

In this case:

  1. We inform the end customer that their transaction was fully authenticated at checkout. Any chargeback liability is shifted to the card issuing bank. The customer will need to contact their card issuer to open a chargeback.
  2. Our Order Review/Fraud department is notified.

Each situation is unique, and certain transactions may be evaluated on a case-by-case basis.

How does Zonos handle chargebacks?

Zonos directly manages chargebacks, shielding your business from additional hassle.

A $25 fee applies to each chargeback. Depending on the processor, this fee will be deducted once the claim is paid (Stripe) or when the dispute is lost (PayPal).

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