Have you or your cardholder encountered a Stripe Fraud Challenge?
What is a Stripe Fraud Challenge?
Have you or your cardholder encountered a Stripe Fraud Challenge? A Stripe Fraud Challenge is a mechanism that allows cardholders to reattempt transactions that may have been flagged as fraudulent by fraud prevention measures. When a transaction is declined for suspected fraud, Stripe will send an SMS notification to the cardholder. The cardholder can then confirm the legitimacy of the transaction by responding to the message. This feature is now available to all cardholders who have a valid phone number associated with their account.
Cardholder Process:
Cardholders may receive a fraud challenge notification from our payment processor, Stripe. They can override a declined transaction by confirming that the suspicious transaction was indeed initiated by them. It is essential for all members of your Emburse Cards account to have an active and verified phone number registered to utilize this feature.
The cardholder will receive a one-time SMS prompt containing the following message: “Did you attempt a [amount] transaction at [merchant]? Reply YES if you did, or NO if you did not. Reply STOP to opt out.”
If the cardholder replies “YES,” they will receive the following response: “Thank you. Please wait a moment and try again.” To successfully complete the purchase, the cardholder should attempt the transaction a second time. After this retry, they will not receive another SMS prompt, and Stripe will not block the transaction due to high-risk assessment.
Conversely, if the cardholder replies “NO,” they will receive this message: “This transaction was declined. We recommend canceling your card and requesting a new one. Please review your account for any other suspicious transactions.”
Cardholders have the option to reply “STOP” to opt out of future fraud challenges at any time, and can reply “START” to re-enroll in the program.
Example of Stripe Fraud Challenge SMS notification below:
- The phone numbers that the SMS text messages are sent from may vary based on location and provider capabilities.