Understanding the "Early Fraud Warning" Status

What is an Early Fraud Warning?

An early fraud warning occurs when a cardholder lodges a claim of fraud with their issuing bank before an official chargeback is filed. Stripe, the payment processor used by Fundraise Up, provides this warning when they detect fraudulent activity or when they are alerted of possible fraud by the card-issuing bank.

Actions to Take When You Encounter an Early Fraud Warning

When you encounter a donation with the "Early fraud warning" status, it's crucial to act quickly to minimize the risk of a chargeback and potential dispute fees. Here are the steps you should take:

1. Contact the Supporter: Reach out to the supporter as soon as possible to verify whether they intended to make the donation or if they believe the transaction was fraudulent.
2. Refund the Donation: If the supporter confirms that the transaction was not authorized or if you cannot reach the supporter, it's best to fully refund the donation within the given timeframe (usually 24-48 hours). Refunding the donation is the only way to prevent a dispute and potential dispute fees from Stripe.
3. Document the Communication: Keep a record of your communication with the supporter, including any confirmation of the transaction's legitimacy or the supporter’s request for a refund.

Important Considerations

When dealing with early fraud warnings, keep the following in mind:

• Early fraud warnings become disputes 70-90% of the time across the Stripe processing platform, so it's essential to take them seriously.
• The refunding window is typically within 24-48 hours, so prompt action is necessary.
• Fully refunding an early fraud warning is the only way to prevent a dispute and potential dispute fees from Stripe.