Most payment gateways offer some degree of fraud protection. But, the type and effectiveness of the fraud protection can vary amongst payment processing gateways.
A strong, yet flexible fraud management system is the best protection for merchants. Look for systems that allow merchants to configure extensive filters which are vital to detect fraud and screen suspicious transactions.
Good systems provide extensive reports which give merchants a quick and easy way to review transactions, block suspicious activity, and zero in on malicious users. The best systems looks at transactions both before and after processing and can decline transactions before and after authorization.
Other important features to look for are systems that allow merchants to maintain their own good and bad customer list, edit filters, restrict access by banning IPs, and set up and maintain filter controls. Possible filtering criteria include but are not limited to: IP Address, Email Address, Transaction Count, Dollar Amount, IP Velocity check, Dollar Velocity check, Country, US/Non-US IP Ban, and much more.
Properly set fraud filters eliminate the majority of fraudulent transactions in real time. The selected filters can be customized for each merchant, which are continuously updated to keep the merchant one step ahead of the fraudsters.