Online frauds are one of the major concerns due to the shift in digital transaction patterns. This change in pattern indicates a rise in transactions using digital payment modes like UPI and card-based payments as compared to cash transactions. It can put businesses and also their customers in a vulnerable spot. Therefore, it is of crucial importance to exercise great caution and close any open loopholes in digital payments. But we all know that every problem comes with its key and PayU has a solution to this issue too.

Let’s talk about the protocols and mechanisms that PayU deploys to mitigate any risks that may seep into the payment process. Our risk team is equipped with the best-in-class systems to analyze every type of risk leaving no stone unturned. Read on to know how PayU prevents online fraud.

How PayU Helps Businesses Decrease Frauds and Reduce Risks?

PayU serves over 4,50,000 businesses with over 100+ payment methods with millions of transactions every day. Hence, we have an inbuilt risk engine and mechanism besides mandatory protocols & standards to stop fraud. Our risk mechanism ensures that each genuine transaction is processed. PayU has a multi-way triggering system to analyze risky transactions. Let’s find out more about it.

ML (Machine Learning) model

This model detects fraud in real-time. We have a regression-based model that gets continuously trained on transaction-level features. It sees the patterns on potential fraud data inputs based on the past behaviour of the business and learns from the matrices.

Real-time transaction monitoring

PayU has a real-time transaction monitoring process. It keeps track of every single transaction to avoid any fraud’s possibility. It notifies the fraudulent case in advance before settlements.

Risk categorization

PayU has a system in place to categorize businesses and regression runs on the behaviour transaction patterns for each business. If the system identifies any differences in the transaction concerning the line of business, spike, suspect IPs presence, or a suspicious transaction pattern, it prompts risk. Basis GMV’s spike percentage, the risk score is entered in model & transaction level is defined to monitor.

AML (Anti-Money Laundering) implementation

PayU has enhanced due diligence for pre-onboarding & post-onboarding businesses, cross-border & inland transactions with alert queue mechanisms, address verification service (AVS), MCC mappings, classification, and risk-based process-score.

Future of Online Fraud Prevention

While PayU has the best system to prevent fraud, online fraud issues will be a challenge in the days to come. We keep updating our system to mitigate risk completely at a granular level. It helps us in improving transaction monitoring with stringent AML solutions and unsupervised learning approaches. We feed this data to various ML models. If you are finding a payment solution for your business, we’re just a click away.

Reach out to us for more queries at