[kuschku]

> don't tell them that you've cancelled the order due to fraud

NEVER do that. You’ve got a contract with the customer, you have to either fulfill that or properly explain why you’re breaking the contract.

I’ve had a company break a contract with me (as it later turned out, because I hit one of their fraud measurements) and it took quite an annoying legal battle to force them to accept me as customer (but they had to, and I got almost 2 years of free service out of the company).

If you follow this advice, expect that at some point a customer will be accidentally affected, and some of them will sue you. And you’ll lose.

[SnowHill9902]

Do you actually enter into a contract if you void their payment?

[kuschku]

Yes! At least in German law refunds don't void the contract, the customer has a right to see the contract fulfilled.

A commonly known example is the person who auctioned off farm equipment on ebay, the customer bought a tractor for 1€, and the seller tried to void the contract and refund the customer.

The obvious court decision was that the contract had to be fulfilled, the tractor had to be delivered.

There's very few exceptions in the law surrounding that:

https://www.gesetze-im-internet.de/englisch_bgb/englisch_bgb...

I'm sure in other countries laws it's similar.