Approval Rate Optimization

This guide covers improving credit card approval rates, understanding the anti-fraud procedure, using free/block lists, the chargeback process, and restrictive lists.

Anti-fraud procedure (Credit Card)

The anti-fraud system is provided by our card processing partner and applies exclusively to Credit Card transactions.

How it works

Component	Description
Neural network	Interconnects multiple databases with dynamic indexing rules
Machine learning engine	Feeds risk analysis rule trees with behavioral pattern data
Rule trees	Map scenario-specific behavioral patterns to prevent false positives

💡 The system is designed to ensure that false positives do not contaminate the analyses.

Critical field: Email address

The email address is one of the most important fields for fraud checking. Incorrect email addresses can trigger false fraud alerts.

Best practice	Why
Always fill email correctly	Prevents unnecessary fraud flags
Use business emails when possible	More reliable than free email providers
Verify email format	Simple typos cause false positives

Free and block lists

You can create custom lists to improve approval rates without compromising security.

List type	Effect
Free list	Releases buyers according to their consumption profile – transactions from these emails are less likely to be flagged
Block list	Blocks buyers based on risk profile – transactions from these emails are automatically rejected

💡 Using free and block lists helps increase purchase approval rates for legitimate customers while maintaining security.

How to use free/block lists

Step	Action
1. Identify patterns	Analyze customer behavior to identify trusted and risky users
2. Add to list	Configure lists via Dashboard or API
3. Monitor	Track approval rates and adjust as needed

Restrictive lists and screening

WEpayments screens transactions against multiple restrictive lists:

List type	Description
Sanctions lists	OFAC, UN, EU, and Brazilian government sanctions
PEP lists	Politically Exposed Persons
Internal blacklists	Entities previously flagged
Watchlists	Regulatory and law enforcement lists
Negative media lists	Entities associated with adverse news

💡 Transactions involving entities on sanctions lists are automatically blocked.

Understanding the credit card chargeback process

A chargeback occurs when a customer disputes a transaction with their card issuer and requests a refund.

Common chargeback reasons

Reason	Description
Fraudulent transaction	Customer claims they did not authorize the purchase
Product not received	Customer claims they never received the product/service
Product not as described	Customer claims product/service differed from description
Technical error	Customer was charged multiple times or incorrect amount

How to prevent chargebacks

Prevention measure	Description
Clear descriptors	Statement descriptor should clearly identify your business
Shipping confirmation	Provide tracking numbers and delivery proof
Customer support	Respond quickly to customer complaints
Fraud screening	Use WEpayments anti-fraud system
Refund proactively	Offer refunds before customer initiates chargeback

What to do when a chargeback occurs

Step	Action
1. Receive notification	WEpayments notifies you of the chargeback
2. Gather evidence	Collect transaction details, delivery proof, customer communication
3. Submit defense	Provide evidence to our team for chargeback defense
4. Await decision	Card issuer makes final decision (can take 30-90 days)

💡 Chargeback fees may apply. Contact support for details.

MED notifications (PIX fraud returns)

The Special Return Mechanism (MED) is a Central Bank of Brazil process that allows banks to return funds from suspected fraudulent PIX transactions.

How MED impacts approval

Aspect	Description
Trigger	Customer fraud complaint or bank suspicion
Impact	Funds frozen during investigation
Outcome	Funds returned (if fraud confirmed) or released (if legitimate)
Prevention	Maintain transaction records and delivery proofs

Best practices to improve approval rates

Practice	Why it helps
Validate email addresses	Email is a key fraud signal
Use free lists for trusted customers	Reduces false positives
Monitor chargeback ratios	High ratios may lead to restrictions
Provide clear billing descriptors	Reduces customer confusion and disputes
Respond quickly to compliance	Prevents transaction holds

​Anti-fraud procedure (Credit Card)

​How it works

​Critical field: Email address

​Free and block lists

​How to use free/block lists

​Restrictive lists and screening

​Understanding the credit card chargeback process

​Common chargeback reasons

​How to prevent chargebacks

​What to do when a chargeback occurs

​MED notifications (PIX fraud returns)

​How MED impacts approval

​Best practices to improve approval rates