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I'm an online merchant based in the USA, and I received an order that failed my fraud checks. I believe the "customer" is using a credit card that doesn't belong to them. I don't want to ship an expensive order only to get an unauthorized-use chargeback.

Would it be a good idea to call the bank providing the card, and ask them to notify the real card owner, and maybe ask if they did authorize the purchase. Would they/could they do this? I don't have a full card number, but I can supply the gateway provided transaction ids.

toastifer
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From BNG Payments - How to Report Credit Card Fraud as a Merchant

Contact the Customer or Issuing Bank Contact the customer by email or over the phone to ensure the order is authentic. You can also contact the card-issuing bank; they can reach out to the customer for verification.

Additional information from MasterCard - Do you suspect fraud?

A Code 10 authorization request alerts the card issuer to suspicious activity — without alerting the customer. During a Code 10 call, your acquirer may ask for transaction details. Your call will be transferred to the card issuer's special operator who will provide instructions on any necessary action.

[...]

If a fraudulent transaction occurs, contact the following entities for assistance:

  • Your bank or payment processor
  • Your legal counsel
  • Your local police department or U.S. Secret Service office
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I don't know how much you already know, but for the general audience is nothing else: normally, when there's a chargeback for an unauthorized charge, the chargeback doesn't go back to the merchant; if the issuer authorized the charge, then they're on the hook for it. The main exception is for Card Not Present (CNP) transactions, where the liability is on the merchant. However, if you follow the 3D Secure protocol, the liability will once again fall on the issuer. This is simpler than trying to contact individual cardholders.

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