Payment fraud is a false or illegal transaction, that was not authorized by a customer. Fraudulent transactions can cause you to lose money.
A customer can contact their bank and claim that they shouldn't have been charged for a particular transaction. If the bank considers the customer’s claim as valid, it can issue a chargeback. This chargeback pulls the purchasing funds from the merchant and returns them to the customer.
Fortunately there are steps you can take to reduce the number of fraudulent orders. Read our article about preventing fraud where we'll will cover what you can do to prevent payment fraud.