WooCommerce Payments is built in partnership with Stripe, and uses their fraud prevention system, called Radar. It provides real-time fraud detection for every order placed on your site and will block payments if necessary, before charges are placed.
WooCommerce Payments also has its own fraud protection settings, which can be used to block orders that meet certain risk criteria. You can also customize the detection rules to suit the needs of your particular store.
However, it’s important to keep in mind that no fraud prevention system is perfect. Although it is rare, sometimes merchants may be affected by card testing attacks. You can learn more about card testing, and how to respond to such attacks, in this document.
As WooCommerce Payments continues to enhance the merchant experience, we will be looking to add more fraud detection functionality for stores using our plugin. Please feel free to submit feedback or other ideas on our Ideas Board.