Over payment fraud is commonly known as what?

Over payment fraud is commonly known as what?

• A. Chargeback fraud
• B. Invoice fraud
• C. Payment processing error
• D. Payout scam

Answer: (D)

Overpayment fraud centers on someone paying more than they owe and then requesting a refund of the excess. The tactic relies on abusing how funds are moved out of the merchant’s account through payouts and refunds, which is why this is described as a payout scam. It’s different from chargeback fraud, where a cardholder disputes a charge after payment; invoice fraud, which involves fake invoices; or a payment processing error, which is a system mistake rather than a deliberate fraud. So the term that best captures this method of exploiting the payout flow is payout scam.

Overpayment fraud centers on someone paying more than they owe and then requesting a refund of the excess. The tactic relies on abusing how funds are moved out of the merchant’s account through payouts and refunds, which is why this is described as a payout scam. It’s different from chargeback fraud, where a cardholder disputes a charge after payment; invoice fraud, which involves fake invoices; or a payment processing error, which is a system mistake rather than a deliberate fraud. So the term that best captures this method of exploiting the payout flow is payout scam.