Unlike chip + pin payments where fraud is rare, with online sales card fraud is an issue and will happen if left unchecked. At Flipdish we have lots of checks to help prevent card fraud.

Flipdish inbuilt fraud detection systems

One pattern of fraud we see is the use of foreign cards. If a user has a UK phone number and uses a non UK card in the UK this is a very strong indicator of fraud. Our fraud system automatically blocks users who add a card from a country that doesn’t match their phone number. That is, if we’ve a visitor from France in the UK who is using their French phone/mobile number then their French card will work fine. But if a French card is attempted to be used by an UK customer, they get blocked from using cards.

When we block a user for suspected fraud they see a message saying that we cannot accept card orders and to please pay with cash instead. So they are still free to place an order, they just have to pay using cash.

There will inevitably be false positives here and we have the ability to white-list customers and allow them to place orders using foreign cards on a case by case basis. If you’ve a trusted customer who is trying to use a foreign card please email [email protected] and we’ll white-list them.

We of course don’t want to block legitimate customers but it’s better to have a handful of legitimate customers pay using cash over receiving a ton of chargebacks down the road.

Suspicious use

We have additional fraud detection systems that mark orders as suspicious but allow them to be placed. We notify the store on your Flipdish printout that the order is suspicious and you can decide whether to accept or reject the order.

This fraud check is based on where the order is being delivered to. If the delivery location is within 20 meters of a place where you've experienced fraud in the past, we mark the order as suspicious, and suggest that cardholder verification should be requested. 

If this happens, a message like shown below will be printed on the receipt. 

To keep fraud low it's important for your staff to know that they can refuse suspicious orders. In these cases your staff can:

  • Outright refuse the order
  • Refund the online payment and require the customer to pay using chip and pin or cash
  • Request that the customer show them the card used to pay online
  • Require a photograph of the customer before handing over the order

Unusually large orders

The latest feature on the portal is flagging ‘Unusually large orders’ placed online. This is designed to help your staff be cautious of large orders placed online using card. 

Orders that are placed by new customers and are unusually large are flagged as recommending cardholder verification on your Flipdish printout. 

We recommend you request cardholder verification in these instances. If you're unsure whether or not to accept the unusually large order, we would recommend you reject it and ask the customer to pay with cash instead.

To keep fraud low it's important for your staff to know that they can refuse suspicious orders. In these cases your staff can:

  • Outright refuse the order
  • Refund the online payment and require the customer to pay using chip and pin or cash
  • Request that the customer show them the card used to pay online
  • Require a photograph of the customer before handing over the order

Related article:  how to keep chargebacks low

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