A fraud situation occurs when card-related information is used illegitimately (physical card theft, card data online theft, etc.).
Even though all online businesses are subject to card fraud, some activities such as eCommerce or donation crowdfunding are particularly exposed.
Fraud is identified when the cardholder contacts his/her bank to indicate that he/she did not perform all or some of the transactions debited from his/her bank account, and therefore decide to oppose them (within 120 days max in general).
The cardholder bank opens a formal investigation in order to get the money back and refund the cardholder.
The risk of fraud is inherent to the world of card payments. It is therefore important that you take it into account (ex: application of a rolling reserve, minimum number of days before your clients can request money-outs) in your business plan/your daily follow up.
While it is your responsibility to take all necessary measures to fight against card fraud, Lemon Way does everything possible to limit this risk and protect you from fraudulent behavior.
For some additional information on card fraud, just take a look at the Lemon Way blog entry on friendly fraud, here