Cayan and Chargebacks

dsteinbeckdsteinbeck Member Posts: 25 ✭
Not sure others have experienced this, but our use of Cayan for ecom has been very disappointing and expensive. Their fraud detection (for ecom) is almost non-existent. We have received multiple orders that come to us from Cayan as approved, but when looking deeper, the AVS criteria was not met, the address did not match, the 3 digit code did not match and they sent it through as approved. Our shipping staff do their best to identify fraudulent orders, but we have still lost thousands of dollars in merchandise.

We switched to Stripe in hopes that their fraud detection is better.

Posted this more as a warning to others regarding Cayan, but are interested in seeing if others have experienced the same thing.


  • teichtoysteichtoys Member Posts: 1
    The same happened to us w Cayan. We don't sell very much thru ecomm so were able to catch most of them, but it still wasted a lot time to investigate and then cancel the transactions. Multiple calls to Cayan on the topic were met w sympathy but no solutions. Wish we could switch but we use Lightspeed OnSite and as far as I understand w have to use Cayan.
  • AntonioAntonio Moderator, Lightspeed Staff Posts: 4 moderator
    Thank you for providing us with feedback about our partners at Cayan. I'm very sorry that you've had these experiences while processing with them, and I'd like to let you know that this specific issue is one of our main topics of discussion with Cayan. They've recently confirmed to us that they're working on improving the fraud prevention experience for merchants, and here at Lightspeed we're eager to see these changes implemented in the short term.

    At the moment, the best recommendation that we have for you is to use Cayan's Merchant Portal to review the payments you receive on your shop. On their portal, you will be able to see whether there was an AVS or CVV mismatch, and make a decision as to whether you'd like to fulfill the order, or cancel it.
    eCom Support Manager, North America
    Lightspeed HQ
  • SubspaceBoiseSubspaceBoise Member Posts: 11
    We had the same experience starting out and decided to switch our eCom to to avoid this happening again. It's worth it for the configurable fraud protection. We still use Cayan in the shop and would consider switching back to Cayan if they add the same layers of protection and offer a better rate.
  • agscanadaagscanada Member Posts: 44 ✭
    One of the reasons we continue to support PayPal as we have never once had a chargeback. A couple that worked out in our favour as the fault was on the credit card company.
  • dada_tb_1dada_tb_1 Member Posts: 5
    Same problems here! Cayan has almost ZERO fraud protection! it takes us a lot of time and customers getting pissed off, because we asking for security questions to them or lot of the times chargebacks . It sucks... They need to give that a huge priority.
  • JoeyJoey Administrator, Moderator, Lightspeed Staff Posts: 277 moderator
    We have a great support article on Minimizing chargebacks by detecting fraudulent orders which can be implemented in your workflow and applied to any payment provider.

    eCom Support Team
    Lightspeed HQ
  • MOSCMOSC Member Posts: 10
    edited September 2018
    Same problem here with Cayan.  There was absolutely no filter against fraud, at all.

    We ended up switching to since our current bricks&mortar credit card processor has a portal with them (Heartland).

    Just a note about fraud, in general:

    Despite setting up extensive fraud filters over at, we've still been hit recently with a very sophisticated fraud where the fake customer had a fake linked-in profile connecting to a fake ad agency in Manhattan that must have had a fake BBB profile in addition to other presence on the net.  A call to her "business" resulted in talking to a woman who had ordered $4K in product.  We insured it and required a signature from UPS.  Good thing, because the items were sent back, "Customer refused delivery, had never ordered."

    This is in addition to the thousands of dollars in fraudulent orders I've managed to evade, despite the fake customers having real, stolen, credit cards.  In those cases I was able to cyberstalk the supposed customers and contact them via a different connection (their family car dealership, etc.).  Not so with the fake Manhattan ad agency fraud.

  • gregaricangregarican Member Posts: 898 
    edited September 2018
    We don't use Lightspeed E-Com. We use Shopify. But ran into issues with different payment processors and their lack of fraud protection. So we wound up implementing a middleware service of sorts. Called Riskified. They sit between you and your payment processor. If they approve a charge they will pass it back to your payment processor for settlement. They charge a small percentage transactional fee for any approved payment. But that comes with 100% chargeback protection where they eat the costs.

    You can tell they have lots of pretty sophisticated automated heuristics, but sometimes it takes awhile to submit their decision. In those cases you can tell they had staff manually verifying things on their end.

    Since our companies sell luxury retail jewelry online, the price points are high as are the fraudsters' attentions. So we had to do something!
  • JoeyJoey Administrator, Moderator, Lightspeed Staff Posts: 277 moderator

    Starting today, the following fraud protection has been implemented into the Cayan payment integration:

    CVV Mismatch: Card Verification Value, is the three-digit number (usually) printed on the back of the card.

    AVS Mismatch: Address Verification System, the billing zip code used during checkout needs to match the zip code associated with the credit card.

    If there is a mismatch the customer will be notified that the payment has failed and asked to try again.

    As usual, the order will show as awaiting payment in the back office and automated payment notifications will be sent (if enabled) to encourage the customer to complete the order.

    This is a great step towards better fraud protection!

    eCom Support Team
    Lightspeed HQ
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