Related pages:
Online payments can attract fraudulent activity, including stolen cards, account takeover, and payment abuse. FareHarbor combines automated payment protections with practices you can follow to help reduce fraudulent bookings and chargebacks.
Fraud protection overview
The majority of card payments processed through FareHarbor are via Stripe and benefit from Stripe Radar, Stripe’s machine learning-based fraud prevention system.
Stripe Radar analyzes signals across Stripe’s network to assess transaction risk in real time. These signals may include card and payment history, device and browser information, IP address reputation, geographic indicators, behavioral patterns, and known fraud signals.
Based on these signals, Stripe Radar can block high-risk transactions, allow legitimate transactions to proceed, and adapt to emerging fraud trends.
Stripe Radar works alongside other protections, including Address Verification System (AVS) and 3D Secure Authentication.
Note: FareHarbor also works with the alternative payment processors PayPal and dLocal which have similar fraud prevention systems.
Additional fraud protections
Every business faces different fraud risks. Additional protections may be available depending on your business and the activity affecting your account.
Examples of enhanced protections may include:
- Additional verification requirements for certain transactions
- Geographic-based payment controls
- Rules tailored to your booking patterns or business model
- Extra authentication requirements for higher-risk purchases
FareHarbor's Payments Operations team can discuss available options and whether additional protections may be beneficial for your business.
Best practices
Watch for reseller fraud
Unauthorized resellers may use stolen payment information to purchase bookings and resell them through unofficial channels. The original transaction may initially appear legitimate but later result in a fraud dispute or chargeback.
Warning signs may include:
- Unusual booking patterns
- Large volumes of bookings from new customers
- Multiple bookings using similar customer information
- Customers arriving with bookings purchased through unknown third-party sellers
- Increased fraud-related chargebacks
If you notice these patterns, contact FareHarbor Support. If the activity appears to be part of a larger or coordinated fraud scheme, also report it to the appropriate local authorities.
For check-in practices, ID and card matching, and refunds for suspected fraud, see Tips for preventing disputes.
Watch for card testing
Card testing occurs when fraudsters submit transactions or repeated payment attempts to determine whether stolen or compromised card information is valid.
Possible signs include:
- A sudden increase in payment attempts or declines
- Multiple cards attempted within a short period
- Repeated attempts using similar customer or booking information
- Unusual activity involving low-value transactions
If you notice an unusual increase in payment attempts or believe your business is experiencing card testing, contact FareHarbor Support.
Keep your account and payout information secure
Protecting your account and payout information can help prevent unauthorized activity.
- Keep user access and permissions up to date.
- Remove access promptly when someone no longer needs it.
- Use strong, unique passwords, and never share login credentials.
- Keep 2-step verification enabled for Dashboard users.
- Enable notifications for bank account changes.
- Contact FareHarbor promptly if you notice an unexpected bank account change or other suspicious account activity.
Keep clear booking records
Not every fraud-related chargeback involves a stolen card. Friendly fraud can occur when a legitimate cardholder makes or authorizes a purchase and later disputes it.
Keep clear booking records, customer communications, cancellation and refund policies, and documentation showing that a service was provided. See Tips for preventing disputes for additional recommendations.
For information about responding to criminal and friendly fraud disputes, see Dispute reasons and what to do.
Common pitfalls & things to avoid
Don’t rely on the cardholder name for payment verification
Customers may provide a cardholder name during checkout, but the name itself cannot be verified as part of the payment authorization process.
Card networks and issuing banks use other payment and authentication information to evaluate transactions. Treat the cardholder name as supplemental customer information rather than a reliable verification method.
Don’t send card-payment funds to unrelated third parties
Avoid accepting a customer's card payment and then using those funds to pay an unrelated third party, vendor, supplier, or individual on the customer's behalf.
Fraudsters may use stolen payment credentials to make an apparently legitimate purchase and then request that some or all of the funds be transferred elsewhere. If the original payment is later disputed as fraudulent, the transferred funds may be unrecoverable.
Higher-risk scenarios may include:
- A customer asks you to pay a third-party vendor using funds from their card payment.
- A customer requests that part of a payment be forwarded to another individual or business.
- A customer overpays and asks for a refund through a different payment method.
- A booking involves unusual requests to redirect funds to parties not directly associated with the booking.
Frequently asked questions (FAQs)
Why was a transaction declined?
A payment can be declined for many reasons, and the specific reason is not always shared with businesses or payment processors.
Common reasons include:
- The card issuer suspected fraudulent activity
- The customer entered incorrect card information
- The card has insufficient funds or has reached its credit limit
- The card has expired or is no longer valid
- The transaction did not meet the card issuer’s security requirements
- Additional authentication, such as 3D Secure, was unsuccessful or could not be completed
- The transaction was blocked by fraud prevention tools, such as Stripe Radar or account-specific fraud controls
If a customer believes their payment should have been approved, recommend that they:
- Contact their card issuer to verify the reason for the decline
- Confirm that their billing information and card details were entered correctly
- Try another payment method if one is available
If you notice an unusual increase in declined transactions, or believe legitimate customers are being declined due to fraud prevention settings, contact FareHarbor Support.
For questions about how authorizations appear on customer statements, see Customer bank statements FAQs.
Will fraud prevention tools block legitimate customers?
Fraud prevention tools are designed to stop high-risk transactions while allowing legitimate customers to complete purchases. No system is perfect, and in some cases a legitimate transaction may be declined or require additional verification.
A transaction may be flagged due to factors such as:
- Unusual purchasing behavior
- A high-risk location or IP address
- Multiple payment attempts
- Information that differs from the customer’s typical spending patterns
- Security checks performed by the card issuer
If you believe legitimate customers are being declined too frequently, contact Payments Operations. We can review your account’s fraud prevention settings and discuss whether adjustments may be appropriate.