57% of Firms Find Payment Fraud After Settlement

For retailers offering financing or digital payments, fraud is becoming a 'hidden tax' that hits long after the customer has walked out the door. A new report shows that 57% of businesses only discover payment fraud after the transaction has already been settled. This delay means you aren't just losing the cost of the goods; you are paying double due to recovery costs, chargeback fees, and operational headaches. The research highlights a massive gap between 'Top Performers' who catch fraud early and everyone else. If your business relies on Buy Now, Pay Later (BNPL) or other financing tools, this lag time is your biggest risk. When fraud is detected post-settlement, the merchant often bears the brunt of the dispute process. The report suggests that moving toward real-time authentication—verifying the bank account or identity at the point of sale rather than waiting for the payment to clear—is no longer optional. For operators, this means reviewing your current financing partners' fraud detection speed. If your lender or processor is frequently flagging issues days after a sale, your bottom line is leaking cash through administrative friction and lost inventory.

Source: PYMNTS

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