Cannabis Fraud Prevention Solution that Protects Your Payments
Fraud and chargebacks are the fastest way to lose your cannabis merchant account.
FastoSafe gives you the tools to stop fraudulent transactions before they happen, reduce chargebacks, and keep your payment processing secure, so you can focus on growing your business, not fighting disputes.
FastoSafe
The Biggest Fraud Threats to Cannabis Merchants
Chargeback Abuse & Stolen Card Fraud
Customers often consume products and then falsely claim they never received them, leading to chargebacks. Others use stolen credit cards to buy premium cannabis products for resale, leaving merchants with financial losses and penalties when the real cardholder disputes the charge.
Account Takeover Fraud
Fraudsters gain access to customer accounts through phishing attacks or data breaches, using stored payment methods to place high-value orders. Since these purchases appear legitimate, they often go undetected until the real customer reports unauthorized activity.
Synthetic Identity Fraud
By combining real and fake information, criminals create fraudulent accounts that pass standard verification checks. This allows them to exploit promotions, place fraudulent orders, and manipulate payment systems without detection.
Why FastoSafe is the Best Cannabis Fraud Prevention Solution
Every day, legitimate cannabis transactions flow through your business alongside fraud attempts. The difference between them? Often unnoticeable to standard security.
FastoSafe sees what others miss.
AI-powered Fraud Detection
Our AI ensures unparalleled marijuana payment fraud prevention. The way a customer navigates your site. The subtle patterns in their purchase history. The relationship between their device, location, and behavior. All analyzed in milliseconds. Plus, device fingerprinting identifies repeat offenders, while velocity checks spot unusual buying surges that traditional systems miss.
3D secure 2.0 (3DS2)
When a transaction needs additional verification, 3D Secure 2.0 shifts liability to the card issuer, protecting your business without interrupting your cash flow. High-risk transactions trigger biometric verification or one-time passcodes, ensuring stolen cards never complete a purchase.
Instant Dispute Alerts
The moment a customer initiates a chargeback, you'll know. Our direct integration with Ethoca and Verifi gives you precious time to resolve the issue before it becomes a formal dispute, protecting both your revenue and your processor relationship.
Bonus: Automated KYC/AML Compliance
Know Your Customer (KYC) and Anti-Money Laundering (AML) protections are built in. FastoSafe verifies customer identity, blocks transactions from restricted areas, and ensures that every sale meets state and federal cannabis regulations. With FastoSafe, you don't have to sit back and watch disputes drain your revenue. We help you stop fraud in its tracks before it even happens.
Why Fraud and Chargebacks Are Killing Cannabis Businesses
Cannabis merchants face frequent disputes, some valid but many fraudulent. Banks closely monitor chargeback ratios, exceeding limits can lead to severe financial consequences.
Rising Processing Fees & Financial Penalties
Excessive chargebacks lead to skyrocketing processing fees. Payment providers view high-risk merchants as liabilities, increasing costs or imposing restrictions that cut into your profits.
Rolling Reserves That Freeze Your Cash Flow
If your chargeback ratio climbs too high, banks may impose 60-90 day rolling reserves, tying up your revenue and making it difficult to manage daily operations, inventory, and growth.
Loss of Payment Processing & Business Disruptions
Failing to control fraud and chargebacks can lead to account termination, leaving you without a way to accept payments. Once blacklisted, finding a new cannabis-friendly processor becomes even more challenging. FastoSafe helps prevent this by stopping fraud before it happens.
Getting Started with FastoSafe
FastoSafe integrates directly with your payment gateway, working in the background to stop fraud without disrupting customer experience. The setup is simple:
Sign up for a free fraud risk assessment.
Connect FastoSafe to your existing payment system.
Start protecting your transactions instantly.
Best Practices for Cannabis Chargeback Protection
While FastoSafe protects you from fraudulent transactions, these simple practices can help you minimize disputes and chargebacks:
Use clear billing descriptors: Customers should recognize charges on their statements to prevent confusion-based chargebacks.
Provide detailed product descriptions: Clear expectations mean fewer disputes over product effects or legality.
Require signature upon delivery: This prevents “item not received” claims that turn into chargebacks.
Respond quickly to customer concerns: Solve disputes before they escalate to chargebacks.
Track every transaction: Keep records of purchase logs, shipping details, and verification steps: evidence is your best defense.
Ready To Protect Your Cannabis Business From Fraud?
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FAQs About Cannabis Fraud Prevention
Can I use Stripe or PayPal for cannabis payments?
No, Stripe, PayPal, and Square don’t support cannabis payments. They categorize cannabis as high-risk and can freeze your funds without warning. FastoSafe works with high-risk-friendly processors to keep your operations flowing.
Will fraud prevention slow down my checkout process?
Not at all. FastoSafe analyzes transactions in real time, ensuring legitimate customers experience no delays. Fraudulent activity is flagged behind the scenes, so the buying experience stays smooth.
What happens if I already have a high chargeback rate?
If your chargeback rate is over 1%, most processors will increase your fees, hold funds in rolling reserves, or even shut down your account. FastoSafe helps reduce your chargebacks and keep your processor happy.
How fast can you reduce my chargebacks?
Most clients see a 60% drop in disputes within 30 days.
Can fraud prevention tools help me lower my processing fees?
Yes, maintaining a low chargeback rate and proving strong fraud prevention practices can help you negotiate better rates with high-risk payment processors. At FastoSafe, our processing fees can go as low as 2% for merchants with a proven track record of reducing chargebacks.
Can I blacklist repeat offenders who file chargebacks against my business?
Yes, FastoSafe lets you create blocklists to prevent high-risk customers from making repeat purchases, reducing fraud losses over time.
How do bonus and discount fraud impact cannabis eCommerce?
Fraudsters create multiple accounts to abuse first-time buyer discounts, loyalty rewards, and promotional offers. Our system detects duplicate accounts and unusual usage patterns to prevent this.
How do I dispute a chargeback successfully?
Gather strong evidence, including order confirmation, tracking details, customer communications, and ID verification records. FastoSafe provides automated chargeback dispute tools to help you win more cases.
