In today's world, it is pertinent to evaluate every transaction to weed out the fraudulent ones.
Chargebee integrates with Stripe Radar to prevent fraudulent transactions through Stripe's Payment Gateway.
Stripe Radar is powered by advanced machine learning algorithms that automatically learns from Stripe's global network of businesses to help identify and prevent fraud in real time.
With the integration, Chargebee intends to track fraudulent transactions which in turn reduces chargebacks.
To know more about how Stripe Radar works, refer Stripe's webpage.
With Stripe Radar Integration, Chargebee allows you to deal with suspicious and fraudulent transactions on Transaction level, as well as Customer level.
Stripe Radar works only for transactions that go through Stripe's Payment Gateway.
Every Chargebee transaction that goes through Stripe's payment gateway will be evaluated by Radar and is categorized into three:
When a transaction is marked Suspicious by Stripe Radar, the same will reflect in your Chargebee App and you will also receive an email notification about it.
You can locate the suspicious transaction either by clicking on the link you received via email or by navigating to Logs > Transactions, where you can filter the transactions using the ‘Is Suspicious' filter. Selecting the suspicious transaction will take you to the transactions details page with a screen as below:
Based on the customer who made the transaction and their transaction history, you can conclude whether or not the transaction is legit.
If you're convinced that the transaction is fraudulent, click on Confirm & Refund and the transaction will be marked Fraudulent in Chargebee as well as Stripe and a credit note will be created for refunded amount.
If you know that the transaction is genuine, to mark it safe, click on Mark as Safe in Stripe and you'll be redirected to your Stripe Dashboard (Stripe does not have an API to automatically make the transaction as safe) to make the change. Once marked safe in Stripe, the change will reflect automatically in your Chargebee app.
Stripe Radar provides transaction level security where all your transactions are monitored and tagged accordingly. Additionally, Chargebee provides customer level security based on Stripe Radar's notifications.
To enable the feature which displays the details of a suspicious customer in your Chargebee site, navigate to Settings >Configure Chargebee > Billing LogIQ > Fraud Monitor Settings and choose to Display alerts on fraud detection at customer level.
Customer level operations are available only in selected plans. To know more, visit Chargebee's Plans and Pricing page.
Here, you can also choose to enable/ disable emails from Chargebee on detection of any suspicious or fraudulent activities.
Once enabled, Chargebee notifies on any fraudulent events that can occur in your site.
Emails are sent every 24 hours to your site's administrator and customer support team.
When the customer makes a transaction, Stripe flags the suspicious transaction and reports it to Chargebee. Now Chargebee will mark the customer as suspicious and you can later mark them as safe or fraudulent.
You can locate the suspicious customer either by clicking on the link you received via email or by navigating to Customers, where you can filter the customers using ‘Is Suspicious' filter. Selecting the suspicious customer will take you to the customer details page with a screen as below:
To mark the customer as safe after verifying the transaction that was made, click on ‘Mark as Safe'. This will mark the current and all future transactions as safe. Once marked safe, Chargebee will ignore all future fraud/suspicious alerts from Stripe Radar for this customer. This change will not reflect in Stripe automatically. You will have to manually mark the transaction as safe in your Stripe dashboard.
After verifying the transaction, if you find the customer as fraudulent, click on ‘Mark as Fraudulent'. This will mark the current transaction as fraudulent. A credit note will be created for the transaction and their self-service portal(if available) will be disabled. Moreover, customer will not be able to reactivate their canceled subscription.
After which, you will be asked whether you want to cancel all other subscriptions of the same customer. If ‘No, Keep Them' is selected, other subscriptions remain active. If ‘Yes, Cancel All' is selected, all other subscriptions get cancelled.
If you decide not to cancel the subscription, the customer has to use another mode of payment for the renewal of the subscription.
Clicking on ‘Ignore' will ignore the current transaction made by the Customer. However, you will be notified of the fraud transactions in future.
Navigate to Customers in your Chargebee app and you will find an option in the filter which will display the list of suspicious customers.
How would you conclude if a customer is fraudulent?
Here are a few tips to conclude if the customer is fraudulent:
How do I mark a fraudulent customer as safe?
Navigate to Customers > Select the Customer in your Chargebee app and you'll find the option to mark them safe. When they're marked safe, all the future fraud/suspicious alerts from Stripe Radar will be ignored.