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Face ID

Face ID is Apple's implementation of facial recognition software. Facial recognition can be used as a form of two-factor authentication for logging in to accounts and even making payments. While many forms of facial recognition can be fooled by a photo, Face ID uses an infrared projector to obtain depth information that it includes in the user's facial profile. Read more >>>

Fair Credit Billing Act

The Fair Credit Billing Act was a bill passed by the United States Congress in 1974 that gave credit card customers the right to dispute billing errors on their accounts. This act essentially created the modern chargeback, although the details of the chargeback process are left to the individual credit card networks to determine. Read more >>>

False Decline

A false decline is when a valid debit or credit card transaction is declined, often because either the merchant's fraud prevention system or the bank's mistakenly judged the transaction attempt to be fraudulent. In the context of fraud prevention software, false declines may also be referred to as false positives. Read more >>>

First-Party Fraud

First-party fraud occurs when a cardholder disputes a legitimate transaction on their account by giving the bank false information, whether knowingly or unknowingly. This type of fraud may also be referred to as friendly fraud or chargeback fraud. The term first-party fraud is also sometimes used to describe situations where a fraudster opens a new financial account using false identification information. Read more >>>

Floor Limit

A floor limit is the maximum transaction value for a debit or credit card purchase that doesn't require prior authorization. Transactions for an amount greater than the floor limit can't be processed without authorization, but modern payments technology automatically conducts authorization for every transaction, making floor limits largely irrelevant except in cases of a network problem.

Food Delivery Fraud

Food delivery fraud occurs when a merchant selling food for takeout or delivery is targeted by someone attempting to commit fraud. Often these are small-scale fraud attempts intended to achieve nothing more than a free meal, but food delivery fraud may also be used to conduct card testing in some cases. Read more >>>

Force Majeure Chargebacks

Force majeure chargebacks are chargebacks made with the given reason that the force majeure clause in the sales agreement has released the customer from their obligation to pay the merchant. There have been many force majeure chargebacks associated with the COVID-19 pandemic, especially with regard to the travel and hospitality industries. Read more >>>

Fraud

Fraud is a crime committed by using intentional dishonesty to take something from a victim. Examples of fraud include credit card fraud, where someone uses stolen payment credentials to make a purchase, identity theft, where one person pretends to be another using stolen personal information, and merchant fraud, where someone sells goods or services they don't intend to deliver. Read more >>>

Fraud as a Service (FaaS)

Fraud as a service (FaaS) is an operation where fraudsters offer their tools or services for hire to clients on the dark web. These organizations are often run like a business, improving their methods and tools to improve efficacy and efficiency. They may offer access to botnets, automated software for committing fraud, or targeted hacking services. Read more >>>

Fraud Blacklist

A fraud blacklist is a database containing information related to individuals confirmed or suspected to have committed fraud against a merchant. This information may include the fraudster's name, payment card number, IP address, shipping address, device fingerprint, etc. Incoming orders with information that matches an entry on the fraud blacklist are blocked or flagged for manual review. Read more >>>

Fraud Detection

Fraud detection refers to the various means by which merchants, banks, and other financial institutions can automatically detect and prevent fraud. Methods of fraud detection include basic information verification such as AVS and CVV matching as well as advanced fraud prevention tools that assign a risk score to each incoming transaction based on a variety of metrics. Read more >>>

Fraud False Positives

Fraud false positives occur when a fraud prevention tool incorrectly identifies a legitimate transaction as fraudulent. Depending on the system the merchant has in place, these orders may be marked for manual review, taking up time and resources, or rejected outright, resulting in the loss of a sale and likely a customer. Read more >>>

Fraud Filter

A fraud filter is a program that analyzes incoming orders and screens out those that may be fraudulent. Simple fraud filters like AVS and CVV matching can screen out fraudsters with stolen payment credentials that are incomplete, while more complex fraud prevention software can use risk scoring to weigh the risk of fraud based on a variety of factors. Read more >>>

Fraud Tools

Fraud tools are programs or systems designed to identify and screen out fraudulent purchases. Fraud prevention software often includes several different tools, including velocity checking, risk scoring, AVS, and device fingerprinting. These fraud prevention tools must often be carefully calibrated to effectively detect fraud without rejecting too many legitimate customers. Read more >>>