How do you deal with payment fraud prevention as an app dev?

Been dealing with some sketchy transactions lately and my current fraud detection is pretty basic.

Mostly just blocking obvious stuff like mismatched billing addresses but wondering what else I should be looking at.

What fraud prevention measures actually work without killing conversion rates?

Learned the hard way about chargebacks on a subscription app.

Track failed payment attempts. If someone tries 3+ cards in 10 minutes, it’s likely fraud. Stolen cards often get tested this way.

Check time zones too. Real users buy during their normal hours. Transactions at odd hours from different regions should be flagged.

Adding a small friction step for high-risk transactions helped. A quick SMS verification can deter fraudsters, while genuine users won’t mind a text.

Use device fingerprinting. Most payment processors offer good tools for tracking suspicious transactions.

Using velocity checks is effective for identifying users switching cards in a short time frame. Setting spending limits on new accounts can help manage risk. I also recommend requiring email verification for first purchases to reduce fake signups while keeping genuine users intact.

Focus on behavioral patterns rather than just transaction data. Fraudsters tend to rush through purchase flows while genuine users take their time. Monitor session duration and page views before purchases.

Implement BIN checking as well. The first six digits of a card indicate the issuing bank and country. Flag cards from high-risk regions or prepaid cards if they are uncommon for your app.

For subscription services, pay attention to upgrade behaviors. Fraudsters usually try to upgrade immediately to exploit higher spending limits.

Check IP location against billing address. Easy red flag.