Top 5 Tools for Credit Card Security and Fraud Detection

Digital subscription services, adult content platforms, CBD retailers, and gambling sites are prime targets for sophisticated fraud schemes that directly impact your bottom line.

As a high-risk merchant, the stakes are higher for you because payment processors already scrutinize your transactions and charge premium fees.

Excessive fraud and chargebacks (these two are tied together) can lead to account termination or MATCH list placement, effectively ending your ability to process payments.

Credit card fraud prevention software is there to protect your revenue, improve customer trust, and maintain a healthy relationship with payment processor. Let’s take a look at some of the best fraud protection tools on the market.

But First…How Do These Tools Reduce Chargebacks and Improve Approval Rates?

We wrote about this more extensively in another blog, take a look.

Real-Time Transaction Monitoring

AI-powered fraud detection analyzes transactions the moment they occur, examining multiple data points simultaneously. The technology cross-references IP geolocation, device fingerprints, and purchase history to identify suspicious patterns instantly.

When a high-risk transaction appears (like a $500 booking from a new device in a known fraud region), the system flags it for immediate review.

Meanwhile, recurring orders from trusted customers continue uninterrupted. This sophisticated filtering allows businesses to block fraudulent activity without disrupting legitimate sales.

Dynamic Authentication with 3D Secure

Modern fraud prevention deploys adaptive security measures that respond to the unique risk profile of each transaction.

3D Secure 2.0 technology analyzes risk levels in real time, applying additional verification only when necessary.

This approach creates a seamless experience for trusted customers while adding security layers for suspicious transactions.

That late-night purchase from a customer’s regular device? It processes smoothly. But when a high-value order comes from an unfamiliar location with mismatched shipping details, the system activates additional verification steps like fingerprint scanning or one-time codes.

Chargeback Prevention

Effective fraud prevention extends beyond blocking suspicious transactions to include proactive dispute management.

Advanced systems like FastoSafe, provide early warning by integrating with networks like Ethoca and Verifi that alert merchants the moment a customer initiates a dispute.

This notification window allows businesses to resolve issues before they escalate to formal chargebacks.

For example, a travel company can quickly address a “services not rendered” claim by providing booking confirmation and delivery evidence within hours, avoiding the significant penalties associated with chargebacks.

These features do more than just stop fraud. As Dennis, our CEO, says: “A strong payment security software isn’t just about stopping fraud—it also ensures legitimate transactions go through, reducing lost revenue due to false declines.”