Fraud Reporting
- Devan Robertson
- Hannah Richardson
- Jacob Harris
- Kristafanie Somers
Overview
For most card networks, fraud reporting must be completed before a fraud chargeback can be submitted. The system facilitates automatic fraud reporting via direct integration with popular card networks. This step is only applicable to credit and debit card claims.
The Fraud Reporting flow is executed on fraud card claims to facilitate the reporting process. QFD supports reporting fraud immediately after enrichment or when one of the following actions are initiated:
Chargeback
Deny
Write Off
When a service is available, this action is complete automatically by the system. When no service is configured, an assignment is generated to prompt a user to complete the necessary actions.
Bulk Fraud Reporting
In an environment where fraud reporting is completed manually, a bulk option is available to reduce the number of steps required to complete the fraud reporting step. If the disputes span multiple networks, a bulk action will be displayed for each supported network.
Extension Points
To configure how fraud reporting is executed, update Fraud Reporting Pre-Conditions.
To enable "in-flow" fraud reporting that is only executed when chargeback, deny or write-off actions are executed, set the IsFraudReportingPostEnrichment DSS to false.
To configure what automated methods are available and the system should determine which one to use, update DetermineAutoFraudReportingMethod.
To configure the maximum number of retry attempts for the integration service, update D_ImplConfig.MaxFraudReportingServiceRetries.
To enable verification mode for Mastercard, update the MCFraudReportingVerificationModeEnabled DSS. This will require a user to review all fraud values before sending the report to Mastercard.
To enable verification mode for Visa, update the VisaFraudReportingVerificationModeEnabled DSS. This will require a user to review all fraud values before sending the report to Visa.
Fraud Reporting Reversal
Fraud reporting is reversed in the following scenarios:
A transaction disputed as fraud is later denied for any reason other than merchant credit
A transaction disputed as fraud is later reclassified to a non-fraud dispute reason
Fraud Reporting Rejects
When a fraud report is rejected, the system should exit the flow and not attempt to delete the fraud reporting. The Completed Actions will show fraud reporting as successfully completed even if it was subsequently rejected.
In the event of a fraud reporting reject, no user action will be prompted and there will not be a notification present in QFD. No update will be made if the dispute is denied. There will be an audit entry to show that the service was run as a part of QFD's standard checks in final processing.
Fraud Types
Visa
The following fraud types are supported by the Visa network. The Default Rules column describes the logic used for setting the default fraud type.
Stored Value | Display Value | Default Rules | Notes |
|---|---|---|---|
0 | Lost | ClaimReason = "CardLost" |
|
1 | Stolen | ClaimReason = "CardStolen" |
|
2 | Card not received as Issued (NRI) | ClaimReason = "CardNotReceived" |
|
3 | Fraudulent application | ClaimReason = "FraudApp" |
|
4 | Issuer reported counterfeit | ClaimReason = "CardSecure" and disputed transaction does not have a ECI indicator | Visa also checks that POS entry mode is not 05/95. |
5 | Miscellaneous/Account takeover | ClaimReason = "AccountTakeOver" |
|
6 | Fraudulent use of account number | ClaimReason = "CardSecure" and disputed transaction has a ECI indicator |
|
A | Incorrect Processing |
|
|
B | Account or Credentials Takeover |
|
|
C | Merchant Misrepresentation |
|
|
D | Manipulation of Account Holder |
|
|
Mastercard
Stored Value | Display Value | Notes |
|---|---|---|
00 | Lost Fraud |
|
01 | Stolen Fraud |
|
02 | Never Received Issue |
|
03 | Fraudulent Application |
|
04 | Counterfeit Card Fraud |
|
05 | Account Takeover Fraud |
|
06 | Card Not Present Fraud |
|
51 | Bust-out Collusive Merchant |
|
54 | First-Party Fraud This reason code must be used when applicable effective 27 January 2025 in the Canada Region and 27 October 2024 in all other Regions. |
|
55 | Modification of Payment Order |
|
56 | Manipulation of Cardholder |
|
Rule(s) | FraudReporting, AutoFraudReporting, ExecuteMCFraudReporting, ExecuteVisaFraudReporting |