PayU deploys AI fraud cover for international cards

PayU has launched a new AI-powered service named Fraud Liability Protect to help merchants in India accepting international cards reduce fraud losses and payment failures. The service uses machine-learning risk assessment, dynamic authentication and protection against eligible fraud chargebacks. It evaluates cross-border card payments using transaction and behavioural signals, determining the required authentication level for each payment.

Low-risk transactions pass with less friction, while higher-risk transactions undergo stronger authentication checks. PayU claims merchants using the technology have seen a 4% to 5% improvement in international card payment success rates and a reduction in fraud exposure. One online travel merchant reported a 14% increase in payment success rates and an 83% reduction in its fraud-to-sales ratio.

The system is designed to strike a balance between preventing fraud and not hindering legitimate transactions, especially important for merchants expanding across markets. PayU's Fraud Liability Protect is integrated with PayU Checkout and targets small and medium-sized businesses in sectors like travel, e-commerce, and food technology.