What would you like them to do?

Even in the post you're wishy washy about what you want. They offer a product that does enhanced fraud detection but you don't like that. You correctly call out that there's major risks with taking a merchant's report and using it to flag a user's future transactions.

The article mentions Stripe's product in this space: https://stripe.com/en-us/radar

There are similar offerings from other companies. I don't know if bundling this with payment processing is common.