BE AWARE
PayPal Commerce is our gateway and we use NoFraud. We have always had our Order Transaction Type in the PayPal configuration set at "Authorize and Capture (Sale)". This has been like that for years. It has always been my understanding that PayPal first Authorizes the transaction, then sends the transaction info to NoFraud and NoFraud returns a Pass Fail response. PayPal is then supposed charge or decline the transaction depending on the NoFraud response.
That is no longer the case.
We have had two transactions in the past two days that PayPal has Authorized and completed (Captured) the transaction FIRST. Then when NoFraud returned a Fail response, PayPal immediately issues a refund. We never see an order. The customer never receives an order confirmation, yet the he sees his card has been charged. The customer then contacts us to inquire about his order and we tell we never received it but he's getting a refund. He is legitimately skeptical. This also makes us look like we are conning people and triggers chargebacks. We get bad posts on social media and on, and on, and on....... PayPal also collects all their transaction fees, of course. So far alone in the last two days we've had two orders totaling over $4000 for which we've paid fees for.
We have reconfigured the Payment type to "Authorize Only" which hopefully will eliminate the issue but adds another step to our order processing.