Payments & Risk
On this page
Written by someone who runs fraud programs for a living. No ads, no affiliate links, nothing to sell.
- Check your chargeback ratio (ask your processor if you don't know it)
- If it's above 0.5%, read Reduce Chargebacks Fast
- If it's below 0.5%, you're fine for now. Focus on your business.
Most small merchants don't need fraud tools. Your processor's built-in rules handle the obvious stuff. Come back when you're seeing patterns.
Core Sections
| Section | What You'll Learn |
|---|---|
| Payments | How money actually moves. Authorization, settlement, why transactions fail. |
| Fraud | Detection, prevention, the difference between fraud and credit loss. |
| Chargebacks | Disputes, reason codes, how to fight back (and when not to). |
| Compliance | Network rules, PCI, consumer protection. The stuff that gets you fined. |
Learning Paths
By Experience Level
🟢 New to Payments - Start here if terms like "interchange" or "chargeback ratio" are unfamiliar
Week 1: Foundations
- How Payments Work - The basics of money movement
- Payment Methods - Cards, ACH, digital wallets
- Decline Codes - Why transactions fail
Week 2: Risk Basics 4. Fraud Types - What you're protecting against 5. Chargeback Fundamentals - Disputes explained 6. Compliance Overview - Rules you must follow
Week 3: Operations 7. Buying Payments - Choosing processors 8. Chargeback Prevention - Stop disputes before they start 9. Fraud Prevention - Basic protections
🟡 Intermediate - You know the basics, ready to optimize
Optimize Revenue
- Auth Optimization - Improve approval rates
- Checkout Conversion - Reduce abandonment
- Settlement & Reconciliation - Where your money goes
Reduce Losses 4. Risk Scoring - Smart fraud decisions 5. Velocity Rules - Pattern detection 6. Representment - Fight winnable disputes
Scale Operations 7. Processor Management - Multi-processor strategy 8. Fraud Metrics - Measure what matters 9. Chargeback Metrics - Stay below thresholds
🔴 Advanced - Deep dives and specialized topics
Specialized Fraud Types
- Synthetic Identity - Manufactured identities
- Account Takeover - Credential attacks
- Friendly Fraud - Customer abuse
- Fraud Rings - Organized attacks
Advanced Detection 5. Device Fingerprinting - Cross-account linking 6. Behavioral Analytics - User behavior patterns 7. Risk Scoring - Building scoring models
Compliance Deep Dives 8. Network Programs - VAMP, ECM thresholds 9. PCI DSS - Security requirements 10. AML Basics - Anti-money laundering
By Role
SMB Owner: Buying Payments → Chargeback Prevention → Reduce Chargebacks Fast
E-commerce Manager: Checkout Conversion → Auth Optimization → 3D Secure
Fraud Analyst: Fraud Types → Risk Scoring → Velocity Rules → Fraud Metrics
Payment Operations: Settlement & Reconciliation → Processor Management → Chargeback Metrics
By Problem
| Problem | Start Here | Then Read |
|---|---|---|
| Transaction declined | Decline Codes | Auth Optimization |
| Got a chargeback | Chargeback Lifecycle | Representment |
| Ratio too high | Zero Point Nine Panic | Chargeback Prevention |
| Seeing fraud | Fraud Types | Risk Scoring |
| Choosing a processor | Buying Payments | MCC Codes |
| Money stuck | Holds & Reserves | Payout Strategy |
| Going international | Going Global | Payment Methods |
Quick Reference
| Resource | Use For |
|---|---|
| Decline Codes | Understanding why transactions fail |
| Reason Codes | Understanding why chargebacks happen |
| MCC Codes | Merchant category classification |
| Benchmarks | Industry comparison data |
Vendor Guides
- Chargeback Vendors - Alert services, representment providers
- Fraud Vendors - Detection and prevention tools
- Fraud Vendor Selection - How to evaluate vendors
Emergency?
In a hurry? Jump to Playbooks for step-by-step guides:
- Reduce Chargebacks Fast - Crisis response
- Setup Dispute Alerts - Prevention setup