Electronic devices and internet purchasing are more common today. For online line shopping most of people are using internet banking and credit for doing payment for purchasing. For time saving and various offers on credit card and debit card customer prefer on line shopping like various platform Amazon, Flip cart, big basket etc. For online transaction security is prime concern. There is various type of attack possible during online transaction, stealing of password, fraud transaction, and meet in middle attack etc. During the online transaction stealing confidential information like OTP, transfer money from someone account to another account is a crime.   In the digital world fraud during the online transaction day by day increases exponentially. To detect the unauthenticated transaction and fraud during online used various methods. Data is playing very important role during the online fraud. So, knowledge discovery is most frequently used to protect online fraud. In this paper suggested a technique based on knowledge discovery and machine learning methods, we strive to develop the best model possible in this research study to predict transactions involving fraud and transactions involving no fraud. Fraud detection uses a variety of machine learning techniques, including K-Means clustering methods, Support Vector Classifier, Logistic Regression, and Anomaly Detection Algorithm Techniques. After analysis it was found that Anomaly Detection Algorithm Techniques gives best accuracy for fraud detection 99.85%.