The Fraud and Risk Management Service uses machine learning to score transactions for fraud likelihood, but Checkout.com states it may be unable to explain individual scoring decisions and that final transaction acceptance or rejection responsibility rests with the merchant. The service does not guarantee fraud prevention.
This analysis describes what Checkout.com's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision places final decisional responsibility on the merchant for transaction outcomes while reserving the underlying scoring rationale from disclosure, which may limit merchants' ability to audit, explain, or contest individual transaction decisions made in reliance on the machine learning tool.
Under this clause, merchants bear full responsibility for transaction acceptance and cancellation decisions made using the Fraud and Risk Management Service, even where those decisions are informed by machine learning scores whose underlying rationale Checkout.com states it may be unable to provide. The service is explicitly stated to not guarantee fraud prevention.
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Compare across platforms →"The Fraud and Risk Management Service utilises a machine learning tool that scores transactions based on their likelihood of being fraudulent, which can be incorporated into the Company's settings and rules. As this tool is based on machine learning, Checkout.com may be unable to provide the underlying reasons for why a particular score is given to a Transaction. The final responsibility for the acceptance or cancellation of a Transaction, based on the Company's settings and rules remains with the Company. The Fraud and Risk Management Service does not guarantee the prevention of fraudulent Transactions.Excerpt from Checkout.com's Terms
REGULATORY LANDSCAPE: The use of machine learning in payment fraud scoring may engage the EU AI Act's requirements for high-risk AI systems where applicable, particularly regarding transparency and explainability obligations.
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This provision places final decisional responsibility on the merchant for transaction outcomes while reserving the underlying scoring rationale from disclosure, which may limit merchants' ability to audit, explain, or contest individual transaction decisions made in reliance on the machine learning tool.
Under this clause, merchants bear full responsibility for transaction acceptance and cancellation decisions made using the Fraud and Risk Management Service, even where those decisions are informed by machine learning scores whose underlying rationale Checkout.com states it may be unable to provide. The service is explicitly stated to not guarantee fraud prevention.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Checkout.com.