The best way to reduce the risk of disputed and fraudulent online payments in your business is to take steps to prevent them from happening at all. There are a number of effective dispute and fraud prevention strategies built into the PayNow app and the Stripe processing platform however you can also take action to reduce your risk in this area when dealing with your customers.

Collect as much payment information as possible

Firstly, you should always ensure you collect as much payment information as possible when processing payments, including customer name, email address, CVC number and billing address (zip / postcode). The more information included with the payment, the easier it is for Stripe to check with the card issuer that the customer’s card is legitimate. Should the verification fail you will have the opportunity to consider whether you proceed with the payment. PayNow has just released an update to its app that includes additional fields such as cardholder name and zip (postcode) so you can take advantage of these additional security verification methods.

Use a clear description to help prevent “friendly fraud”

Disputes sometimes occur when a customer has made a legitimate purchase however fails to recognise the transaction on their card statement and then lodges a dispute at a later date. This is called “friendly fraud”. Eliminate this type of dispute by clearly describing the good/services you’re selling in the “description” field in PayNow, and by making sure your business name is clearly identifiable on credit card statement descriptor (instruction here.) Doing these two things will help ensure your buyer can recall what the charge was for.

Take advantage of Stripe Radar tools

Stripe is a world leading platform that processes billions of dollars in payments each year for thousands of companies around the world. Stripe’s built in fraud prevention platform called “Radar” works to verify transactions and detect fraudulent patterns across its network. Even if a card is new to your business, there’s an 89% chance it’s been seen before on the Stripe network. You can read more about how to use Stripe Radar tools here.


While disputes and fraud are an unfortunate aspect of accepting mobile payments, the Stripe fraud prevention strategies and dispute platforms along with your collection of payment information, client data and exceptional customer service will help to ensure ongoing mobile payment success in your business.

Disclaimer: the information contained in this website and the links provided are for general information only and should not be taken as constituting professional advice from the website owner. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances.

Jo Coveney

Jo Coveney

Jo is a passionate photographer and online marketing content creator. She loves following the latest developments in technology and design trends across the globe.
Jo Coveney