Risk and Fraud

PaymentsAI monitors all accounts for risk signals and conducts reviews when specific thresholds or patterns are detected. Understanding how this works helps you protect your revenue and maintain good standing.

Risk Reviews

A risk review may be triggered by any of the following:

• Non-compliant website content: PaymentsAI scans merchant websites for content that does not comply with payment industry standards or regulations, including missing terms, conditions, or refund policies
• High card refusal rates: A high rate of declined transactions may indicate fraud, technical issues, or inadequate fraud prevention measures
• High chargeback rates: Consistently high chargebacks signal potential fraud, poor customer experience, or fulfilment issues
• Fraud notifications: Multiple fraud alerts received from card networks or financial institutions may flag an account for review

When a risk review is initiated, payouts may be temporarily disabled. The review process typically takes approximately 2 business days. After the review, payouts may resume automatically or PaymentsAI may contact you with additional questions.

Chargebacks

A chargeback occurs when a cardholder disputes a transaction with their bank. The disputed amount is deducted from your next settlement. You are responsible for contesting chargebacks by submitting evidence within the deadline set by the card network.

The evidence you need depends on the dispute category (for example, fraud, merchandise or services not received, canceled or recurring transactions) and the card network. For the required evidence per category, accepted file formats, and per-network rules, see the Disputes Process guide and its linked Chargeback Defense Requirements.

Response Deadlines

The deadline to submit evidence is set by the card network and is counted from the date the chargeback was filed. Submitting after the deadline forfeits the dispute regardless of the evidence.

All days are calendar days, counted from the date the chargeback notice is received.

Card network	Defense submission deadline
Visa	9 or 18 days (depending on dispute type)
Mastercard	40 days
Maestro	40 days (same as Mastercard)
American Express	14 days
Discover	25 days
Diners Club	25 days
JCB	40 days
UnionPay (CUP)	30 days
Affirm	15 days

For the full dispute matrix — including RFI response windows, chargeback initiation limits, and final decision windows — see the Disputes Process guide.

Important:

Once a chargeback has been initiated on a transaction, you cannot refund it. If you decide not to contest it, you must accept the chargeback. Note that once a representment is submitted, it can take up to 120 days from the date of the chargeback for the bank to make a final determination.

On the PaymentsAI Gateway, before a chargeback is filed, the card network often issues an early warning — a Notification of Fraud (NOF) or fraud alert. At that stage the transaction can still be refunded, which prevents the case from becoming a formal chargeback. See Notification of Fraud (NOF) below.

Chargeback Ratio

The industry standard is to keep your chargeback ratio below 0.9%. Sustained rates above card network thresholds may result in significant fines and can trigger corrective action by PaymentsAI.

Notification of Fraud (NOF)

A Notification of Fraud is a warning issued by the card network before a formal chargeback is filed. If you receive an NOF, issue a refund immediately. Resolving the situation at this stage prevents the case from escalating into a formal chargeback and counting against your chargeback ratio.

Note:

NOF is available only on the PaymentsAI Gateway. External gateways do not surface these early-warning notifications through PaymentsAI.

Preventing Chargebacks

The most effective way to manage chargebacks is to prevent them from occurring.

At checkout:

• Collect as much payment and customer data as possible (expiry date, CVC, billing address) to enable rigorous fraud checks
• Require customers to accept your terms, conditions, and refund policy before completing payment — this provides evidence if a chargeback is filed later
• Use a recognisable statement descriptor so customers can identify the charge on their bank statement — see Business Decision Matrix for descriptor configuration

After the sale:

• Keep customers updated on order status, shipping, and any delays
• For orders with expected delays, use pre-authorisation and charge the card only when the product ships
• Send confirmation emails after purchase and after any refund, including the projected posting date
• If a customer contacts you about an unrecognised charge, resolve it directly before they escalate to their bank
• If your descriptor differs significantly from your website or DBA name, inform customers of the descriptor before they complete payment