CBD Fraud Prevention Solution to Secure Your Payments Once and For All
Fraudulent transactions and excessive chargebacks put your CBD merchant account at risk. FastoSafe helps you catch fraud before it happens, reduce disputes, and keep your payment processing intact.
FastoSafe
Why Fraud and Chargebacks Threaten CBD Businesses
Stolen Card Fraud
Fraudsters use stolen credit cards to purchase high-value CBD products in bulk and resell them. When the real cardholder discovers the unauthorized transaction, they file a chargeback, leaving you with both the financial loss and processing penalties.
Chargeback Abuse & Friendly Fraud
Some customers intentionally dispute legitimate purchases, falsely claiming they never received the product or that it didn’t meet their expectations. Without strong dispute evidence, banks often side with the buyer, leading to lost revenue and higher chargeback ratios.
Affiliate & Subscription Chargebacks
Affiliate fraud can drain marketing budgets through fraudulent referrals, while subscription chargebacks arise when customers sign up for recurring CBD deliveries and later dispute the charges. Though less frequent, these types of fraud still pose financial risks to your business.
How FastoSafe Protects CBD Merchants
Fraud prevention in the CBD industry requires proactive measures to stop suspicious transactions before they happen. FastoSafe’s advanced security tools detect fraudulent activity, prevent chargebacks, and ensure compliance with evolving regulations, all without disrupting legitimate purchases.
Real-Time Screening
Every transaction is analyzed instantly, evaluating device signatures, location patterns, and purchase behavior. This prevents fraud before payment is processed, keeping bad actors out of your system.
Liability Shift with 3D Secure
3D Secure 2.0 authentication shifts financial risk from your business to the card issuer. Legitimate customers experience seamless verification, while unauthorized transactions are blocked before they can harm your revenue.
Instant Chargeback Alerts
FastoSafe notifies you the moment a dispute is initiated, giving you time to issue refunds, resolve customer concerns, or gather evidence to fight chargebacks before they impact your account.
Smart Fraud Detection
Our system recognizes suspicious patterns that humans miss, such as rapid purchases, unusually large orders, or multiple transactions from the same source. This prevents chargeback schemes and subscription abuse from draining your accounts.
Regulatory Compliance & Identity Verification
FastoSafe ensures compliance with CBD regulations by verifying customer age, identity, and shipping eligibility. This protects your business from accidental violations while maintaining secure transactions.
Seamless Integration with Any Platform
Whether you use Shopify, WooCommerce, BigCommerce, or a custom-built platform, FastoSafe integrates easily. Our solution works with all major high-risk payment processors and supports credit cards, ACH transfers, and cryptocurrency payments.
How CBD Regulations Come Into Play?
CBD businesses face strict regulations, like age verification, shipping and banking rules. Many payment processors limit or refuse service due to the risks. FastoSafe ensures compliance with a full suite of protection tools
Identity Verification
We confirm your customers are who they claim to be. and old enough to legally purchase your products. This prevents underage sales that could trigger regulatory action against your business.
Geographic Intelligence
Some states welcome your products. Others forbid them. Our system recognizes these boundaries and automatically blocks transactions from restricted locations, protecting you from accidental shipping violations.
Behavior Monitoring
When someone orders unusual quantities or exhibits purchasing patterns that suggest reselling or illegal distribution, we flag it immediately. This helps you avoid unwittingly participating in improper product distribution.
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 Fraud-Free Operations
While our platform forms your first line of defense, these everyday practices create additional layers of protection:
Speak Clearly on Statements
Many disputes begin simply because customers don’t recognize your charge on their statement. Replace generic terms with your actual brand name. This simple change can dramatically reduce confusion-based disputes.
Write Detailed Product Descriptions
Many CBD chargebacks stem from unrealistic expectations. Create detailed product pages explaining exactly what effects customers should expect, proper usage guidelines, and realistic timeframes for results.
Keep Customers Posted
Reach out after purchase with tracking information, usage instructions, and an easy way to resolve concerns before they escalate to disputes. This personal touch significantly reduces “didn’t receive item” or “not as described” claims.
Ready To Protect Your CBD Business From Fraud?
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FAQs About CBD Fraud Prevention
Can I use PayPal or Stripe to process CBD payments?
No, PayPal, Stripe, and Square don’t support CBD businesses. They classify CBD as a high-risk industry and can freeze your funds without notice. I’ve seen too many merchants lose access to their money this way. That’s why it’s crucial to work with a processor like FastoSafe that specializes in high-risk merchant services.
How quickly will I see a drop in fraud?
Most merchants see significant reductions in fraud and chargebacks within the first two weeks of implementation.
Will this slow down my checkout process?
No. Our system evaluates transactions in milliseconds and runs completely in the background without adding any friction to legitimate purchases.
Why do CBD chargebacks take so long to resolve?
Because most banks manually review high-risk disputes. Unlike regular retail transactions, CBD chargebacks can take 30-90 days to be investigated due to strict compliance checks.
What is KYC (Know Your Customer) verification and how does it help prevent fraud?
KYC is a process that verifies customer identity through documentation checks. For CBD businesses, it confirms age eligibility and identity authenticity, preventing unauthorized purchases and helping meet regulatory requirements.
How can small CBD businesses implement effective fraud prevention on limited budgets?
Small businesses can implement basic measures like CVV verification, address validation, and order amount limits without significant investment. Free tools, shared industry resources, and staged implementation of paid services help balance protection with budget constraints.
How do different CBD product categories influence fraud risk?
High-concentration products and bulk purchases typically present higher fraud risk than lower-value items. Premium items are more targeted for resale fraud, while subscription products face different risk profiles than one-time purchases.
How do fraud prevention needs differ between direct-to-consumer CBD brands and wholesalers?
D2C brands face high-volume, lower-value transactions requiring automated screening, while wholesalers manage fewer, higher-value orders that benefit from relationship-based verification and manual review processes.
