When deciding to use Stripe for your business in Mexico, it's important to understand that Stripe is a payment processor and not a digital wallet. When choosing a payment processor, you’ll be responsible for fraud prevention, for the charges you choose to accept and the costs incurred by fraud. You need to assess the risk of each payment to your business.

• A digital wallet is a payment method, like a debit or credit card. Vendors like Paypal and MercadoPago offer digital wallets in addition to payment processing.

• A payment gateway or payment processor such as Stripe, on the other hand, works as a channel for the payment transaction between the buyer's payment method (which may be a credit or debit card from an issuing bank) and the seller.

In terms of fraud and dispute prevention, with digital wallets buyers are known, so there’s less chance of fraud and thus less disputes raised by fraud issues. Payment processing is not the same as dedicated fraud protection -- although we have anti-fraud tools and we try to eliminate risky transactions without blocking legitimate charges, there is simply no algorithm that can be as effective as manual order review by the merchant.

In other words, if you choose Stripe to process charges, you’ll be responsible for the charges you choose to accept and the costs incurred by fraud, so you need to assess the risk of each payment to your business. Stripe will not be able to guarantee that a payment is not fraudulent, we can only confirm that a charge was successful or unsuccessful, which does not guarantee its legitimacy. The type of fraud attack will depend on the type of business, and for that reason the business owner must be aware of suspicious payments and manage the protection of their Stripe account.

If you think a charge may be fraudulent, please note that we generally recommend that users refund suspicious-looking payments before they become disputes to avoid going through the entire dispute process. Also, keep in mind that when you process refunds to your customers, Stripe does not charge additional fees, but will retain the fees associated with the original transaction.

In this link you’ll find the most common types of fraud indicators to get started:

https://stripe.com/docs/disputes/prevention/identifying-fraud#common-types-of-fraud-indicators