PayU launches AI-powered fraud protection for cross-border card payments

PayU on Friday launched an AI-powered fraud protection solution for Indian merchants accepting international card payments, as the fintech looks to help businesses tackle rising AI-enabled scams without adding friction to legitimate transactions.

Unveiled at Global Fintech Fest 2026, PayU’s Fraud Liability Protect (FLP) uses AI and risk-based decisioning to assess cross-border card transactions, determine the level of authentication required and protect eligible merchants against fraud chargebacks.

The solution is designed to address a growing trade-off for merchants: tighter fraud controls can lead to more authentication and payment declines, while lighter controls can leave businesses exposed to fraud-related losses.


FLP combines three capabilities. Its AI/ML-based risk engine evaluates international card payments using transaction and behavioural signals. It then applies dynamic, risk-based authentication, allowing low-risk transactions to go through with less friction while subjecting higher-risk payments to additional checks. The solution also provides liability protection against eligible fraud chargebacks.

“Fraud protection should not come at the cost of payment acceptance, especially as Indian merchants scale across geographies,” said Manas Mishra, chief product officer at PayU and Wibmo.

Mishra said the solution is designed to protect merchants against both human-initiated and AI-enabled fraud while improving the success rate of genuine international transactions.

PayU said its merchants have seen an approximately 4-5% improvement in international card payment success rates, alongside a reduction in fraud exposure.

In one case, an online travel merchant that adopted FLP recorded a 14% improvement in payment success rates and an 83% reduction in its fraud-to-sales ratio, PayU said.

The solution is particularly targeted at Indian small and medium businesses in sectors such as travel, online travel agencies, airlines, ecommerce, quick commerce and food-tech, where failed cross-border payments can directly affect revenue and customer experience.

PayU said FLP integrates with its Checkout platform. Food delivery platform Zomato is among the merchants using the solution to provide a smoother payment experience while retaining additional controls for higher-risk international transactions.

The launch comes as Indian businesses increasingly look to accept payments from customers overseas, while fraudsters are also using AI to make scams more sophisticated and harder to detect.