: If a fraudulent transaction succeeds and is later disputed by the real cardholder, the merchant loses the funds and pays additional chargeback fees.

To prepare an article based on your request, it is essential to understand that "carding" refers to a specific type of cybercrime and credit card fraud. Using information from authoritative sources like PayPal , the following article provides an educational overview of carding, its risks, and how businesses can defend against it.

: Because stolen cards are often canceled quickly, attackers must test the data to see if it still works. They use automated scripts to submit many low-value purchase requests (sometimes called "micro-transactions") on a merchant’s eCommerce site.

Understanding Carding: The Mechanics of Modern Payment Fraud

To combat these evolving threats, businesses should implement a layered defense:

: These ensure that automated scripts cannot easily send rapid-fire payment attempts.

: Once a card is validated, it is either resold at a higher price or used to buy physical goods and gift cards, which are then liquidated for "clean" money. The Impact on Businesses