The surge in international payments has been accompanied by sophisticated AI-driven fraud, including chargebacks. While stronger fraud controls can introduce authentication friction and affect legitimate payment conversions, lighter controls can increase merchants' exposure to fraud and revenue losses. PayU's Fraud Liability Protect has been designed to address both challenges.
The FLP solution combines AI/ML-powered risk assessment, dynamic risk-based authentication and fraud liability protection. Its AI/ML-powered risk assessment evaluates every international card payment against multiple transaction and behavioural signals. Dynamic risk-based authentication determines the appropriate level of authentication required, with low-risk transactions generally processed without friction and higher-risk transactions routed through stringent authentication. The solution also provides fraud liability protection to cover merchants from unwarranted fraud chargebacks, protecting revenues from international card fraud.
"Fraud protection should not come at the cost of payment acceptance, especially as Indian merchants scale across geographies. With scams becoming more sophisticated and harder to detect amid the rise of AI, PayU's Fraud Liability Protect is designed to safeguard Indian merchants against both human-initiated and AI-enabled fraud. By combining AI and risk-based decisioning, FLP helps identify genuine and risky international transactions, protecting merchants from cross-border payment scams and fraud chargebacks while helping secure their revenues and reputation. Across PayU merchants, we're already seeing an approx. 4–5% improvement in international card payment success rates, alongside a significant reduction in fraud exposure," said Manas Mishra, Chief Product Officer, PayU and Wibmo.
PayU's Fraud Liability Protect is particularly relevant for Indian SMB merchants operating in segments including travel and online travel agencies, airlines, e-commerce, quick commerce and food-tech. In these sectors, cross-border payment declines and frauds can have a direct impact on revenue through loss of customer trust and experience.
The solution has already begun delivering positive outcomes for PayU merchants through its seamless integration capabilities with PayU Checkout. A prominent online travel merchant recorded a 14% improvement in payment success rates alongside an 83% reduction in fraud-to-sales ratio after adopting PayU's FLP. Zomato, one of India's food ordering and delivery platforms, also uses PayU's FLP solution to offer customers a more reliable payment experience while maintaining appropriate controls for higher-risk international transactions.
PayU, India's leading diversified fintech platform with Prosus as an investor, operates businesses that are regulated by the Reserve Bank of India and offers advanced solutions to meet the digital financial services needs of customers, including merchants, banks and consumers. PayU provides payment gateway solutions to online businesses through its cutting-edge and award-winning technology and has empowered 4.5 lakhs+ businesses, including India's leading enterprises, e-commerce giants and SMBs.
The platform enables businesses to collect digital payments across 100+ online payment methods, including Credit Cards, Debit Cards, Net Banking, EMIs, pay-later, QR, UPI, Wallets and more. PayU is a preferred partner in the affordability ecosystem, offering the maximum coverage of issuers and easy-to-implement integrations across card-based EMIs, pay-later options and new-age cardless EMIs. PayU offers e-commerce brands best-in-industry success rates while ensuring a seamless checkout experience.
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