PayU has launched Fraud Liability Protect, an AI-powered solution designed to enhance security and increase success rates for cross-border transactions amidst rising scams and stricter checks, benefiting Indian merchants across sectors like travel and food delivery.
PayU has launched an artificial intelligence-driven tool aimed at reducing fraud and payment declines on international card transactions for Indian merchants, as cross-border e-commerce faces more sophisticated scams and tighter checks. The company introduced Fraud Liability Protect at the Global Fintech Fest 2026 in Mumbai, saying it is designed to help merchants keep genuine payments flowing while limiting exposure to chargebacks and fraud losses.
The product combines machine learning-based risk scoring, adaptive authentication and liability cover for eligible fraud chargebacks. In practice, PayU says low-risk payments can pass with less friction, while higher-risk transactions are routed through stronger verification. Manas Mishra, PayU’s chief product officer, said the system is intended to balance acceptance and protection, and claimed the company is already seeing an improvement of about 4% to 5% in international card success rates across its merchant base.
PayU said the tool is particularly relevant for small and mid-sized businesses in sectors such as travel, airlines, e-commerce, quick commerce and food delivery, where failed international payments can quickly affect revenue and customer confidence. The company pointed to an online travel merchant that reported a 14% rise in payment success rates and an 83% fall in its fraud-to-sales ratio after adopting the system. It also said Zomato is using the product to improve reliability for international card payments while keeping tighter controls on riskier transactions.
The launch adds to PayU’s wider push in cross-border payments and follows its existing support for international card processing and recurring payments, which its documentation says requires tokenisation and OTP-based mandate set-up. PayU, backed by Prosus and regulated businesses under the Reserve Bank of India, said it serves more than 450,000 merchants and supports more than 100 payment methods.
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