PayU launched an AI-powered fraud protection tool called Fraud Liability Protect (FLP) for Indian merchants accepting international card payments, unveiled at the Global Fintech Fest. The solution aims to shield merchants from rising AI-enabled scams and fraudulent chargebacks by assessing cross-border transactions using AI and risk-based profiling, the company said on Friday, according to medianama.com.
FLP combines three core capabilities: AI and machine learning-powered risk assessment that evaluates each international card payment using multiple transaction and behavioral signals; dynamic risk-based authentication that applies stricter checks only to higher-risk transactions while allowing low-risk payments to proceed frictionlessly; and fraud liability protection that covers merchants against unwarranted chargebacks. Manas Mishra, PayU’s chief, emphasized that fraud protection should not reduce payment acceptance as Indian merchants expand globally.
The launch addresses a critical challenge for Indian merchants who face a trade-off between tighter fraud controls that increase friction during authentication and lighter controls that expose them to revenue losses from fraud. PayU’s solution aims to balance security and customer experience by dynamically adjusting authentication levels based on risk. This move follows growing concerns over AI-enabled fraud in cross-border payments, a sector where Indian merchants are increasingly active.
PayU’s Fraud Liability Protect was introduced at the Global Fintech Fest on September 11, 2026. The company highlighted that the tool’s AI-driven approach helps protect revenues from international card fraud while maintaining payment acceptance rates for Indian merchants expanding into global markets.