PayU, India’s leading diversified fintech platform, unveiled its AI-powered Fraud Liability Protect (FLP) solution for Indian merchants accepting international card payments at the Global Fintech Fest 2026. PayU’s FLP solution offers risk and liability protection against modern-day AI scams and eligible fraud chargebacks for cross-border card payments through AI and risk-based decisioning, enabling safer and higher payments conversions for merchants.
Surge in international payments today is accompanied by its share of sophisticated AI frauds, including chargebacks. While stronger fraud controls can add authentication friction and affect legitimate payment conversions, lighter controls can increase exposure to fraud and revenue losses. Designed specifically to address both these challenges, PayU’s Fraud Liability Protect solution combines three core capabilities:
AI/ML-powered risk assessment that evaluates every international card payment against multiple transaction and behavioral signals.
Dynamic risk-based authentication that determines the appropriate level of authentication needed. Low-risk transactions are generally processed without friction, but higher-risk transactions are routed through stringent authentication
Fraud liability protection that covers merchants from unwarranted fraud chargebacks, in turn protecting their revenues from international card fraud
“Fraud protection should not come at the cost of payment acceptance, especially as Indian merchants scale across geographies. With scams becoming more sophisticated and harder to detect amid the rise of AI, PayU’s Fraud Liability Protect is designed to safeguard Indian merchants against both human-initiated and AI-enabled fraud. By combining AI and risk-based decisioning, FLP helps identify genuine and risky international transactions, protecting merchants from cross-border payment scams and fraud chargebacks while helping secure their revenues and reputation. Across PayU merchants, we’re already seeing an approx. 4–5% improvement in international card payment success rates, alongside a significant reduction in fraud exposure,” said Manas Mishra, Chief Product Officer, PayU and Wibmo.
PayU’s Fraud Liability Protect is particularly relevant for Indian SMB merchants operating in segments like travel and online travel agencies, airlines, e-commerce, quick commerce and food-tech, where cross-border payment decline and frauds can have direct impact on revenue, due to loss of customer trust and experience. The solution has already begun witnessing positive outcomes for PayU merchants, given its seamless integration capabilities with PayU Checkout. A prominent online travel merchant recorded a 14% improvement in payment success rates alongside an 83% reduction in fraud-to-sales ratio, after PayU’s FLP adoption. Also, Zomato, one of India’s food ordering and delivery platforms, uses PayU’s FLP solution to offer customers a more reliable payment experience while maintaining appropriate controls for higher-risk international transactions.
About PayU
PayU, India’s leading diversified fintech platform with Prosus as an investor, operates businesses that are regulated by the Reserve Bank of India and offers advanced solutions to meet the digital financial services needs of customers (merchants, banks, and consumers). PayU provides payment gateway solutions to online businesses through its cutting-edge and award-winning technology and has empowered 4.5 lakhs+ businesses, including India’s leading enterprises, e-commerce giants and SMBs. It enables businesses to collect digital payments across 100+ online payment methods such as Credit Cards, Debit Cards, Net Banking, EMIs, pay-later, QR, UPI, Wallets, and more. It’s a preferred partner in the affordability ecosystem, offering the maximum coverage of issuers and easy-to-implement integrations across card-based EMIs, pay-later options and new-age cardless EMIs. PayU offers e-commerce brands best-in-industry success rates while ensuring a seamless checkout experience.
