--- title: "Fraud detection for digital sales · Fungies" description: "Fraud screening on instant-delivery digital goods: every charge screened before it settles, 3D Secure in the checkout, and chargebacks that land on us." image: "https://fungies.io/og-image.jpg" canonical: "https://fungies.io/ai-fraud-detection/" --- Features · Fraud and disputes # Screening goods that are gone the second they are paid for Digital products attract card fraud for the same reason customers like them. Delivery is instant, there is no parcel to intercept and no address to check against. So the screening has to happen before the charge settles, and the losses have to land somewhere. Both of those are ours. [Start free](https://app.fungies.io/register) [Book a demo](https://calendly.com/duke-vuh/fungies-io-demo-clone) No upfront costs. No credit card required. Already selling with Fungies [![Leadsin.io](/logos/clients/leadsin.png)](/customer-story/hosted-checkout-solution-for-leadsin-io-a-saas-business "Leadsin.io — read the story")[![RenderAI](/logos/clients/renderai.png) ](/customer-story/helping-renderai-reduce-their-ai-saas-payment-integration-from-days-to-just-a-couple-of-minutes "RenderAI — read the story")[![SuperScale](/logos/clients/superscale.png) ](/customer-story/nimblebits-revenue-boost-with-a-web-store-solution "SuperScale — read the story")[![FreeVocals](/logos/clients/freevocals.png) ](/customer-story/freevocals-com-and-fungies-io-a-seamless-solution-for-digital-e-commerce "FreeVocals — read the story")![STATSCORE](/logos/clients/statscore.png)![SimFabric](/logos/clients/simfabric.png)![BotRix](/logos/clients/botrix.png)![Enhance AI](/logos/clients/enhance-ai.png)![The Humanize AI](/logos/clients/humanize-ai.png)![Kenerate AI](/logos/clients/kenerate.png) ![A Fungies checkout collecting billing details alongside card, wallet and bank payment options, with tax and the total shown.](/_astro/overlay-checkout.CAZfNuql_ZqVTMw.webp?dpl=dpl_8EZJmbvb3ugYq7WK1KgC21BX19Zp) Billing details are collected because we are the seller. They are also what screening has to work with. ## What runs on every transaction Automated screening before settlement Each payment is screened as it is made rather than reviewed the next morning. A charge that does not pass never becomes an order, and an order that does not exist cannot deliver a file or a key. 3D Secure in the checkout Strong customer authentication is applied through the payment surface we serve, on the transactions that call for it. It is part of the checkout rather than something you switch on and maintain. Card data never reaches you Card entry happens inside a page we serve and certify, whether hosted, overlay or embedded. Nothing sensitive passes through your application, so a breach of your systems is not a card breach. The chargeback lands on us The customer's contract is with us as Merchant of Record, so the dispute is ours to answer. There is no per-dispute fee, where $15 to $30 per case, win or lose, is normal across this category. A descriptor buyers recognise A large share of disputes start with someone not recognising a line on a statement. The descriptor is editable, which makes it one of the cheapest pieces of fraud prevention available to you. Refunds handled from our side Refunds run through the same system that took the payment. Note that a negative balance, for example after a run of refunds, may be debited from your bank account. ## What happens to a suspicious payment 1. 01 ### The details are entered on our page Card and billing details go into the checkout surface we host. Billing information is collected because we are the legal seller, and it is also part of what the payment is assessed against. 2. 02 ### The charge is screened Screening runs before the transaction settles. Where authentication is warranted, 3D Secure is presented as part of the same flow rather than as a second, unfamiliar page. 3. 03 ### Delivery follows the payment, not the click Files, keys and access are released against the payment succeeding. A payment that did not clear cannot produce a delivered product, which is the whole game with instant fulfilment. 4. 04 ### A dispute, if it comes, comes to us We are the merchant on the statement, so the bank contacts us and we answer it. You see the outcome on the payment refunded event and can revoke access from it. ## Why digital goods are their own risk class 01 ### Card testing goes where products are cheap and instant A stolen card list is validated with small charges against something that authorises quickly and needs no shipping address. A catalogue of low-priced downloads fits that description precisely, which is why screening a $4 sale matters as much as screening a $400 one. 02 ### There is nothing to recall A physical order can sometimes be stopped in transit. A file is delivered in a second and a key is used within the hour. Prevention has to happen before settlement because there is no window afterwards. 03 ### A false decline costs a sale, a chargeback costs more Screening too hard loses good customers silently, which is the failure mode nobody measures. Our own platform figures are a 94% authorisation rate and a 0.04% dispute rate, against the 0.7% level at which card networks start putting sellers into monitoring programmes. 04 ### This is screening we run, not a console you tune Fraud rules are part of the platform rather than a rules engine you configure per product. That is a genuine limitation if your business depends on your own risk model, and it is also the reason the losses can sit with us instead of with you. ## What sellers say once they have switched [★★★★★ 4.8/5 from 10 reviews on G2 →](https://www.g2.com/products/fungies-io/reviews) [Vadim Finayev Head of Growth, Leadsin.io “We work with quite a few merchants of record, but none comes close to the support and speed of implementation of Fungies. If you want a payment partner that actually gives you the feeling they want to work with you — rather than leaving you on read for three days or randomly restricting your account — you are in the right place.” Read the story →](/customer-story/hosted-checkout-solution-for-leadsin-io-a-saas-business) [David Elliott Creative Director, Freevocals.com “I researched the options and Fungies was the best fit for functionality and customisation within a store builder you can connect to your own domain. Taking a small percentage of sales, instead of charging a subscription for every environment and plugin, is refreshing.” Read the story →](/customer-story/freevocals-com-and-fungies-io-a-seamless-solution-for-digital-e-commerce) [Elnura Abdimanap Kyzy Founder, TextToVideo.bot “The platform is user-friendly, integrates easily with APIs and webhooks, and simplifies managing digital products and subscriptions. We were up and running quickly and support has been responsive throughout. Fungies is clearly tailored to the needs of SaaS businesses.” Read the story →](/customer-story/how-fungies-enabled-texttovideo-bot-to-integrate-payments-in-minutes) [Francisco Magnone Rienzi Founder, Renderai.app “Fungies has been a great partner — fast setup, competitive pricing, and real humans providing quick answers. They are constantly rolling out new features, and I am excited to see what is next.” Read the story →](/customer-story/helping-renderai-reduce-their-ai-saas-payment-integration-from-days-to-just-a-couple-of-minutes) ## Fraud and dispute questions ### Is there an AI model behind this? ### Can I write my own fraud rules? ### Who pays when a chargeback comes in? ### Does 3D Secure cost me conversions? ### What about refund abuse on downloads? Taking payments ## How money reaches you, and what happens on the way. - [Credit Card Processing →](/credit-card-processing) - [Payment Gateway →](/global-payment-gateway) - [Hosted Payment Gateway →](/hosted-payment-gateway) - [SaaS Payment Gateway →](/saas-payments) - [B2B Credit Card Processing →](/b2b-credit-card-processing) - [Cross Border Payment →](/cross-border-payment) - [Multi-Channel Payment Solutions →](/multi-channel-payment-solutions) ## Let the fraud sit with the seller of record Screening, disputes and the losses that follow them are ours because the sale is ours. Create a workspace and run a payment through the sandbox to see the whole flow first. [Start free](https://app.fungies.io/register) [Book a demo](https://calendly.com/duke-vuh/fungies-io-demo-clone) No upfront costs. 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The part you can verify is where the loss lands, which is with us."}},{"@type":"Question","name":"Can I write my own fraud rules?","acceptedAnswer":{"@type":"Answer","text":"Screening runs as part of the platform rather than as something you tune per product or per market. If your business depends on custom risk rules — a marketplace, or a category with an unusual profile — raise it with us before you integrate rather than after."}},{"@type":"Question","name":"Who pays when a chargeback comes in?","acceptedAnswer":{"@type":"Answer","text":"We do, and we argue it, because the customer's contract is with us as the seller of record. There is no per-dispute fee. The caveat worth knowing is that a negative balance on your account may be debited from your bank account."}},{"@type":"Question","name":"Does 3D Secure cost me conversions?","acceptedAnswer":{"@type":"Answer","text":"Any additional step does. It is also part of what keeps disputes low enough for a flat rate to stay flat. Our platform figures are a 94% authorisation rate and a 0.04% dispute rate, so the balance currently sits well inside where card networks start paying attention."}},{"@type":"Question","name":"What about refund abuse on downloads?","acceptedAnswer":{"@type":"Answer","text":"The customer portal helps more than screening does here. Buyers can re-download files and find their keys themselves, which removes the most common honest reason for a refund request. Refunds themselves are processed by us as the seller."}}]}]} ```