• Post category:StudyBullet-3
  • Reading time:13 mins read

Learn the details of how payment fraud and payment disputes work, both from the merchant and the bank’s perspective

What you will learn

The different types of disputes – including fraud, not not only – between cardholders and merchants

How merchant/commercial banks deal with fraud and disputes – procedures and interactions

The different types of fraud – both in terms of information collection and execution – as well as the perpetrators

The different types of disputes, as well as how merchants can address them (and avoid them in the future)

An exhaustive list of fraud prevention techniques (lists, velocity checks, device verifications, others)

An exhaustive list of chargeback reason codes in disputes (fraud, authorization errors, processing errors, or consumer disputes)



This ultimate masterclass contains two courses on payment system fraud and dispute:

  • Fundamentals of Fraud Prevention and Monitoring;
  • Introduction to Payment Dispute Resolution;

Together in this masterclass, these courses provide the definitive experience for any payment professional that wants to diagnose and address any type of payment issue.

You will learn about dispute frameworks, fraud prevention tools and systems, internal processes, and more.

Much more.


Some people – including me – love to know what they’re getting in a package.

And by this, I mean, EVERYTHING that is in the package.

So, here is a list of everything that this course covers:

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From Fundamentals of Fraud Prevention and Monitoring

  • The general approaches to fraud, including convenience, social engineering, internal fraud and identity theft;
  • How convenience fraud works, with easily accessible information that can be used to commit fraud;
  • How social engineering works, manipulating people into giving up confidential information;
  • How internal fraud works, by leveraging internal information to facilitate fraud;
  • How identity theft works, by having enough information about someone to impersonate them;
  • The different execution types of fraud, including consumer fraud, card block fraud, single-use fraud, cash return fraud, collusive and affiliate fraud, and dynamic or morphing fraud;
  • How consumer fraud works, by lying about product characteristics or other elements to obtain returns or cash;
  • How card block fraud works, generating a batch of card numbers and gauging which are insecure, to be later exploited in purchases;
  • How single-use fraud works, by making one single purchase in a merchant (or multiple), being harder to catch;
  • How cash return fraud works, by buying products with a stolen card and returning them for cash;
  • How dynamic or morphing fraud works, by changing fraud execution to bypass fraud detection;
  • Fraud prevention techniques relying on data verification, including velocity checks, card verifications, charge and deposit verifications;
  • How velocity checks work, by analyzing the number of times a credit card (or another field) is either used or changed within a given period of time;
  • How card verifications work, such as Mod10, BIN, and/or card security schemes, both for data integrity and identity verification;
  • How charge verifications work (verifying a charge with the bank) and deposit verifications (making a deposit to verify a bank account);
  • Fraud prevention techniques relying on identity verification including lists, field verifications, address verifications, manual authentication and automated lookups;
  • How lists work – both hotlists and warm lists of known offenders, but also whitelists for trusted clients;
  • How simple field verifications work for email, age, and others – quick, but not very effective security measures;
  • How address verifications work, for both the billing and shipping addresses (the latter being more complex and expensive, but a lot more secure in terms of preventing fraud);
  • How manual authentication works – by having someone call the client to verify a transaction, or manually search information to verify their identity (usually done by bank staff for KYC requirements);
  • How automated lookups of addresses or phone numbers work, mostly to double-check existing information;
  • Fraud prevention techniques relying on technology (device or token identification, digital signatures and/or consumer location);
  • How device or token identification works, by using software such as cookies or hardware such as USB dongles, smart cards or biometrics in order to tie a device to a specific person, and authenticate them using that device;
  • How digital signatures work, through asymmetric cryptography, authenticating a transaction through the person’s private key;
  • How consumer location techniques work – both in terms of tracking someone’s IP or proxy (including VPN), or through their cell phone GPS location;
  • How fraud scoring and fraud rules can work to prevent fraud – appearing to be competing solutions, but actually working well together under certain conditions;
  • Fraud prevention techniques that are actual processes of institutions, including insurance, guarantees, manual reviews and representment;
  • How insurance and guaranteed payments work, helping reimburse a merchant in the case of fraud, but representing an overhead in terms of costs and being restrictive in terms of the transactions accepted;
  • How manual reviews by banks help guarantee the authenticity of a transaction, and how representment of information by the acquiring bank can help a merchant, but both with unstable results and high costs;
  • Technique considerations when assembling fraud prevention strategies, including determining the risk level of an entity, and the recommended techniques based on it;
  • Considerations in terms of the usage of fraud data – fraud rules, fraud scores, and guaranteeing consistency in the database;
  • Considerations in terms of the processing of fraud data – making sure that database field changes are documented, and that ETL (Extract, Transform, Load) processes don’t ruin the data between operational DB and data warehouse;

From Introduction to Payment Dispute Resolution

  • The essentials of disputes (contractual vs. non-contractual disputes, payment disputes, issuer and acquirer banks);
  • What ADR (Alternative Dispute Resolution) is and how it differs from litigation;
  • What the different types of ADR are (negotiation, mediation and arbitration), as well as the differences between these, and specific implementations of them;
  • The ODR (Online Dispute Resolution) framework, as well as its context and six key principles (accountability, transparency, accessibility, credibility/accreditation, security and enforceability);
  • The three major steps in an ODR process;
  • The three major types of ODR tools (cyber courts, electronic ADR, internal ADR);
  • Implementations of ODR (such as blind bidding, cyber mediation, cyber negotiation and cyber arbitration), as well as specific case studies such as ICANN-WIPO;
  • General guidelines for more efficient dispute resolution as a merchant bank;
  • The steps in the lifecycle of a dispute between an issuer and an acquirer bank, including the retrieval request, chargeback, and second chargeback;
  • The conditions under which the payment scheme may become involved in a chargeback, as well as some measures by them (allocation vs. mediation, pre-arbitration vs. arbitration, liability shifts);
  • Disputes by different payment systems: debit cards, credit cards, ACH, prepaid cards, ATM;
  • The four major categories of chargeback reason codes: fraud, authorization errors, processing errors,  customer disputes;
  • The usual types of chargeback reason codes due to fraud (not authorised or recognised transactions, fraudulent processing, monitored merchant or monitored card, the EMV liability shift);
  • The usual types of chargeback reason codes due to authorization issues (missing or declined authorisation, card in recovery/lost card/stolen card, invalid authorization information),
  • The usual types of chargeback reason codes due to processing errors (late presentment, invalid transaction code or invalid transaction data, duplicated payment or paid by other means, currency mismatches);
  • The usual types of chargeback reason codes due to consumer disputes (mismatches in terms of goods – counterfeit, misrepresented, not delivered, others – cancelled or incomplete transactions, credit not processed);


Remember that you always have a 30-day money-back guarantee, so there is no risk for you.

Also, I suggest you make use of the free preview videos to make sure the course really is a fit. I don’t want you to waste your money.

If you think this course is a fit and can take your fraud prevention knowledge to the next level… it would be a pleasure to have you as a student.

See on the other side!



Fraud Prevention – Intro
Course Intro
Fraud Prevention – Fundamentals
Fraud Prevention – Approaches
General Strategies: Intro
General Strategies: Convenience
General Strategies: Social Engineering
General Strategies: Internal Fraud
General Strategies: Identity Theft
Specific Executions: Intro
Specific Executions: Consumer Fraud
Specific Executions: Card Block Fraud
Specific Executions: Single-Use Fraud
Specific Executions: Cash Return Fraud
Specific Executions: Collusive/Affiliate Fraud
Specific Executions: Dynamic/Tested Fraud
Perpetrators: Intro
Perpetrators: Consumers
Perpetrators: Hackers and Crackers
Perpetrators: White-Collar Criminals
Perpetrators: Organized Crime Rings
Fraud Prevention – Techniques
Data Verification: Intro
Data Verification: Velocity Checks
Data Verification: Card Verification
Data Verification: Charge/Deposit Verifications
Identity Verification: Intro
Identity Verification: Lists
Identity Verification: Simple Field Verification
Identity Verification: Address Verifications
Identity Verification: Manual Authentication
Identity Verification: Automated Lookups
Technological Verification: Intro
Technological Verification: Device/Token Authentication
Technological Verification: Digital Signatures
Technological Verification: Consumer Location
Scores and Rules
Processes: Intro
Processes: Insurance and Guarantees
Processes: Reviews/Representment
Fraud Prevention – Strategies
Strategy Stages
Technique Considerations
Data Usage Considerations
Data Processing Considerations
Fraud Prevention – Conclusion
Course Outro
Dispute Resolution – Intro
Course Intro
Dispute Resolution – Considerations
Dispute Resolution – ADR
Dispute Resolution – ODR
Context and Principles
Steps and Disputes
Implementations and Case Studies
Dispute Resolution – Merchant Banking
General Guidelines
Dispute Lifecycle
Disputes by Payment System
Scheme Involvement
Dispute Resolution – Reason Codes
Fraud: Introduction
Fraud: Not Authorised/Recognised
Fraud: Fraudulent Processing
Fraud: Monitored Merchant or Card
Fraud: EMV Liability Shift
Authorization: Introduction
Authorization: Missing/Declined Authorization
Authorization: Card in Recovery/Lost/Stolen
Authorization: Invalid Information
Processing Errors: Introduction
Processing Errors: Invalid Code or Data
Processing Errors: Invalid Amount/Account
Processing Errors: Duplicate/Other Payment
Processing Errors: Currency Mismatches
Processing Errors: Late Presentment
Consumer Disputes: Introduction
Consumer Disputes: Mismatch of Goods
Consumer Disputes: Cancelled/Not Completed Transaction
Consumer Disputes: Credit Not Processed
Dispute Resolution – Outro
Course Outro