What are stolen tender returns?

A stolen tender return starts with a purchase made with stolen payment details, then turns the goods back into clean money by returning them for store credit, a gift card or a refund to a different payment method.

It links checkout fraud and return abuse: the fraud happens at checkout, and the cash-out happens at the returns desk.

Who it hits

Retailers whose return policies allow refunds to store credit or gift cards, especially those with a buy-online, return-in-store option and products that are easy to resell.

What it costs

You lose twice. Once when the cardholder’s chargeback reverses the original sale, and again when the store credit or gift card is spent.

How to prevent it

• Refund to the original payment method by default.

• Hold refunds on recent card-not-present orders until the charge clears the risk window.

• Screen orders at checkout so stolen-card purchases never ship.

• Link returns back to the original order’s risk signals.

FAQ

Why do fraudsters want store credit instead of a card refund?

A refund to the stolen card goes back to the victim. Store credit or a gift card can be sold or spent by the fraudster.

Is this a checkout problem or a returns problem?

Both. Stopping the purchase at checkout prevents it, and refunding to the original payment method stops the cash-out.