Fraud Prevention for Merchant of Record Platforms
A Merchant of Record carries the fraud, the chargebacks and the scheme ratios for every merchant it sells for. This guide explains where pre-authorisation fraud scoring cuts fraud reports, pre-chargeback alerts and chargebacks, and where it does not help.
Why fraud lands harder on a Merchant of Record
A Merchant of Record sells on behalf of other businesses. The transactions run under the MoR's own merchant accounts, so the MoR carries the fraud losses, the chargebacks and the chargeback ratios for every merchant on the platform. One badly protected merchant can put the whole MID at risk.
Criminal fraud usually follows the same path:
- A fraudster pays with a stolen card or a taken-over account.
- The real cardholder spots it and tells the issuer, which records a fraud report.
- A pre-chargeback alert may arrive through services such as Ethoca or Verifi, followed by a chargeback if it is not refunded in time.
- Fraud reports and chargebacks count against your accounts in card scheme monitoring programmes.
Alerts help you refund before a chargeback lands. They do not stop the fraud, and the refunded sale is still lost revenue. The cheapest place to stop it is before authorisation.
What ProtectMaxx does for an MoR
ProtectMaxx scores every transaction at checkout, before authorisation, and returns a decision in under 100ms. A transaction that is never approved never becomes a fraud report, an alert or a chargeback.
- One API, every merchant: one integration at your checkout covers the transactions of all merchants you sell for.
- All main payment methods: credit card, PayPal, Klarna, Apple Pay, Google Pay, Open Banking, iDEAL, Bancontact and Wero.
- Built for digital goods: models trained on top-ups, gift cards, eSIM, game cards and e-money, where delivery is instant and fraud is highest.
- 40+ signals per transaction: device, IP and geolocation, email age, velocity and history across the network, with 24/7 analyst oversight.
What fraud scoring does not solve
Fraud scoring stops criminal fraud. It does not stop friendly fraud, where a real customer disputes a purchase they made, or service disputes such as unclear subscriptions or slow delivery. Those need clear billing descriptors, easy cancellation and refund policies, and good alert handling. Be wary of any provider that promises to remove all chargebacks.
Plans for MoR platforms
| Score Only | Fully Covered | |
|---|---|---|
| Price | €0.10 per transaction | 1–2% per transaction, depending on risk profile |
| Decision | You get a score and recommendation; you decide | ProtectMaxx decides |
| Fraud liability | Stays with you | 100% chargeback guarantee on fraud chargebacks for approved transactions |
| Start | From day one after API integration | After a risk assessment and a 3–5 month shadow period |
Both plans have a minimum commitment. Fully Covered is offered per portfolio after risk assessment; high-dispute business models may not qualify.
Frequently asked questions
How does fraud scoring reduce pre-chargeback alerts?
Pre-chargeback alerts are triggered after a cardholder reports a transaction to their issuer. ProtectMaxx blocks fraudulent transactions before authorisation, so they never reach the cardholder's statement and never generate a fraud report, an alert or a chargeback.
Can one ProtectMaxx integration cover all merchants on an MoR platform?
Yes. ProtectMaxx is integrated once at the MoR's checkout through an API and scores every transaction that passes through it.
Does ProtectMaxx stop friendly fraud?
No. Fraud scoring stops criminal fraud by third parties. Friendly fraud and service disputes come from real customers and need clear descriptors, refund policies and alert handling.
Can an MoR get a chargeback guarantee?
Yes, under the Fully Covered plan, after a risk assessment and a 3-5 month shadow period. The guarantee covers fraud chargebacks on transactions ProtectMaxx approved.
Check your exposure
Tell us your volumes and payment methods. We'll show you where fraud is getting through and what full indemnification would cost.
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