What does a fraud indicator provide for merchants?

A fraud indicator serves as an alert system for potential fraudulent intent, helping merchants identify transactions that may be risky or suspicious. These indicators typically utilize various data points and algorithms to evaluate behaviors that are commonly associated with fraud. By highlighting transactions that fit these risky patterns, fraud indicators enable merchants to take proactive measures to protect their business, such as flagging orders for review or declining certain transactions entirely.

This function helps to mitigate losses due to fraud, thereby preserving revenue and maintaining the integrity of the payment system. Understanding this capability is essential for merchants to create a secure transaction environment and to safeguard customer information.