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For institutions, how should the risk of fraud be mitigated when dealing with credit card payments and chargebacks?

Oftentimes a fraudulent credit card transaction is followed up by a request for a refund and for the money to be returned via a different medium (i.e., a different bank account). Here are some best practices for dealing with this type of situation:

  • Always process your payments and payment reversals through Flywire. We can confirm information and manage the process for you. Our process provides you with the best protection against fraud.
  • Never complete a payment reversal by different methods or a different account. Without exception, always refund to the identical point/account of origination.
  • Train staff in fraud and chargeback detection and prevention techniques, especially those covering for people out on vacation, leave, or holiday.
  • Be on the lookout for suspicious transactions and unusual requests such as:
    • Substantial overpayment of fees, followed by a request that the excess amount be refunded.
    • Claims a payment was made to the “wrong institution” (e.g., payment was meant for another institution but the payer claims they paid your institution by mistake).
    • Request that a chargeback be satisfied directly by the institution through means different than the original method of payment (e.g., payment by credit card with a request for reversed payment through a check).
    • Pressure tactics. Often fraudsters will rely on pressure by contacting an institution with harassing phone calls or persistent emails. Please contact Flywire in this situation, and we can manage the refund process.
    • Complex personal situations. The refund request may come with a very complicated story about credit cards being cancelled, or travel plans being ruined. We need to be empathetic to these situations but also vigilant in preventing fraud.

When in doubt, contact Flywire. The Flywire service provides for management of all refunds and chargebacks. Our Client Success and Customer Service teams are experts at handling refunds and will immediately follow up to invest suspicious refund requests or assist you in the refund process.