Your charity exists to advance a mission that matters. Unfortunately, cybercriminals increasingly exploit nonprofit donation pages to carry out card testing fraud.
Understanding this threat and taking proactive steps to stop it is essential to protecting your donors, your finances, and your reputation.
What card testing fraud is
Card testing is a method criminals use to confirm whether stolen card numbers are still active.
In a typical card testing scheme, fraudsters obtain large batches of compromised card data from breaches or dark web marketplaces. Using automated scripts or bot networks, they submit many small transactions, often just a few dollars, through online donation forms.
Even charities working with a secure payment provider can be targeted because the intent is not to steal from the charity directly.
When a transaction is approved, the criminal learns that the card is valid and usable. Cards that are declined are discarded. Approved cards are then sold or used for larger fraudulent purchases elsewhere.
Why charities are common targets
Nonprofits often process low-dollar transactions and may appear easier to exploit.
Charities frequently accept small donations, which aligns perfectly with the low-value test charges used in card testing. In addition, some nonprofit websites operate with fewer layered security controls than large ecommerce platforms.
This combination can make donation pages attractive targets for automated fraud attempts.
The impact of card testing on your organization
Even small fraudulent transactions can create serious consequences.
Each attempted transaction generates processing costs, whether it is approved or declined. Over time, these fees can accumulate quickly. When legitimate cardholders discover test charges, they often file disputes, increasing your chargeback ratio.
Elevated fraud and chargebacks can damage your standing with your payment processor and erode donor trust. In severe cases, repeated fraud activity can result in higher processing fees or restrictions on your account.
How to protect your charity from card testing
A layered approach using technology and monitoring is the most effective defense.
Start by enabling all available fraud detection tools within your payment gateway or donation platform. These typically include Address Verification Service checks, CVV validation, and configurable fraud rules that flag high transaction velocity, repeated declines, or multiple attempts from the same IP address or email.
Because card testing is usually automated, blocking bots is critical. CAPTCHA or reCAPTCHA solutions help ensure that a real person is submitting the donation form. Velocity controls can also limit how many transactions are allowed from a single source within a short time frame.
Simple adjustments to your donation form can add another barrier. Setting a minimum donation amount slightly above common test values can deter attackers.
For smaller donations, requiring an extra data point, such as a phone number, can further reduce automated abuse.
Strong protection comes from combining the capabilities of a secure payment provider with vigilant oversight. When intelligent detection, real-time alerts, and prompt action work together, your charity is far better positioned to protect its mission and the donors who support it.
