PayU rolls out AI fraud protection for cross-border card payments

Fintech company PayU launched an AI-powered fraud protection solution on Friday for Indian merchants accepting international card payments. The new tool, Fraud Liability Protect (FLP), aims to shield businesses from rising AI-enabled scams, including fraudulent chargebacks.

PayU states that Indian merchants face a dilemma: stricter fraud controls can add friction to authentication, while looser controls leave them exposed to fraud and revenue loss. FLP uses AI and risk-based profiling to assess cross-border card payments, identify suspicious international transactions, and protect merchants against international card fraud.

The solution combines three core capabilities: AI/ML-powered risk assessment, dynamic risk-based authentication, and fraud liability protection. PayU reports that its merchants are already seeing a 4-5% improvement in international card payment success rates, alongside a reduction in fraud exposure.

The new solution is specifically targeted at Indian small and medium-sized businesses in sectors like travel, e-commerce, and foodtech, where failed cross-border payments can directly impact revenue. One online travel merchant reportedly saw a 14% improvement in payment success rates and an 83% reduction in its fraud-to-sales ratio after adopting FLP. Foodtech company Zomato is also using the solution.