Introduction

Balancing fraud prevention with exceptional customer experience is essential for business success. dLocal safeguards your transactions through rigorous analysis, identifying and blocking suspicious activity.

To help prevent fraud from happening, dLocal evaluates every single transaction that it processes using the data provided and determines whether there is a high probability of it being fraudulent.

By maintaining a strong fraud prevention strategy, you ensure:

• Mitigates financial losses. In addition to the cost of the lost charge, chargebacks and disputes also imply additional costs to merchants for handling, fees, and fines that may apply, and the reputational damage on your brand.
• Long-term conversion rates are improved. By keeping chargeback rates low, acquirers and issuers will be less restrictive with their own fraud controls. Since these industry participants have less visibility on merchants' business models and data, the controls usually configured at these levels act as broader sweeps which cause an adverse impact on conversion rates and are often difficult to reverse.

Data is key

Your data is our weapon against fraud. By providing comprehensive transaction details, you empower our system to detect and prevent fraudulent attempts with precision.

When you share a robust dataset, you equip us with the intelligence to:

• Identify patterns: Uncover hidden trends and anomalies that signal potential fraud.
• Build predictive models: Anticipate fraudulent behavior through advanced machine learning algorithms.
• Personalize protection: Tailor our defenses to your specific business needs and risk profile.
• Enhance decision-making: Provide you with actionable insights to refine your fraud prevention strategies.

Every piece of data strengthens our defenses. Let's collaborate to protect your business from financial loss and reputational damage.

As a rule of thumb, the more data you share, the better equipped our algorithms will be to detect emerging fraud patterns. We encourage reviewing the full specifications for fraud-related fields in our Risk Data Documentation.

Fraud prevention techniques hinge on the data included in each payment request. Depending on your industry and business model, some data points are particularly relevant for effective fraud prevention controls. To ensure you're sharing the right data, please refer to the Required datafields page.