Blacklist protects against payment defaults
A blacklist is a list or database containing the names, bank details and other information of certain customers who have gained negative attention. In most cases, these individuals have a history of repeated non-payment and are therefore blacklisted as “bad” customers.
Internal blacklist
A blacklist can be maintained internally by a company such as a payment provider, or an external list can be used. An internal blacklist has the advantage that it precisely lists the customers who have become conspicuous with the company. The reason for this are usually either fraud attempts or a repeated lack of liquidity. The customers listed on the blacklist are not even allowed to make a new booking.
External blacklist
While good payment service providers often maintain their own internal blacklist, online merchants are often dependent on the use of an external blacklist. They receive this from their payment provider so that they can also protect themselves effectively against payment defaults. To do this, the payment provider checks whether the customer has already had a negative experience with them. The blacklist database contains information on stolen credit cards as well as details of the end customer’s ability to pay. Online merchants can also report conspicuous customers, so that the scope of the blacklist is constantly updated to provide maximum protection. Credit agencies such as Schufa also maintain their own blacklist databases, which can be used by a wide range of providers.
