Fraud notification

A fraud notification is a report from the cardholder’s bank indicating suspected fraudulent activity on an account or transaction.

Unlike disputes, where the cardholder claims a transaction is unauthorized or unrecognized, fraud notifications specifically alert the merchant to potential fraudulent activity. It serves as an early warning system for merchants to investigate and take action to prevent further fraudulent transactions.

Unlike chargebacks, where funds are debited from the merchant’s account, fraud notifications do not involve immediate financial penalties or require the submission of defense documents.