Fraud prevention has always been a balancing act. Merchants want to protect revenue, but adding too much friction at checkout often means losing legitimate customers. In fact, false declines and abandoned carts can cost more than fraud itself. The challenge is clear: how do you secure transactions without sacrificing the customer experience?
At FUGU, we believe the answer lies in post-payment risk analysis — monitoring transactions after the payment is made, instead of forcing all verification upfront. This approach lets good customers enjoy a smooth checkout while risky transactions continue to be monitored until delivery.
The Problem With Traditional Friction
- Static rules create blanket friction. Customers are often asked to provide extra verification even when their behavior doesn’t indicate real risk.
- False declines hurt loyalty. A rejected good customer often never returns, damaging lifetime value.
- Checkout abandonment is real. Every additional step in the payment flow increases the chance that a buyer drops out.
In today’s hyper-competitive e-commerce market, saying “no” too early is often more costly than fraud itself.
Fraud is no longer a one-time event at checkout. It’s a continuous process that can surface before, during, and after the payment. That’s why friction should also be dynamic: only applied when there is a clear risk, and only in the least disruptive way possible.
FUGU monitors post-payment signals such as:
- Changes in shipping addresses or IPs
- Whether customers open confirmation emails
- KYC responses when requested
Support center interactions that reveal intent
This continuous monitoring means merchants don’t have to choose between a smooth checkout and robust protection. They get both.
- Fast approvals at checkout → Customers experience a frictionless flow.
- Suspicious cases flagged post-payment → Orders are monitored until fulfillment.
- Adaptive verification → Only risky customers are asked for extra steps, such as ID upload or selfie verification.
- Evidenced decisions → If a chargeback occurs, the full interaction trail is available to dispute it.
This multi-tier approach ensures friction is targeted and justified, not applied to every shopper.
- Higher approval rates: More legitimate customers are accepted without interruption.
- Lower operational costs: Fewer manual reviews and unnecessary checks.
- Improved customer trust: Shoppers feel safe without being slowed down.
- Revenue growth: Merchants recover sales that would otherwise be lost to over-protection.
In short, fraud prevention shifts from being a cost center to a growth enabler.
The days of adding friction to every transaction are over. Modern fraud prevention must be invisible to good customers and relentless against fraudsters.
By moving risk assessment beyond checkout and into the full transaction lifecycle, FUGU enables merchants to maximize conversion and protection at the same time.
Because in e-commerce, every payment counts.
→ Ready to see how frictionless security works in practice? Contact us today.