Maximize Sales or Decrease Fraud – Why not both?
Fraud management is a balancing act. Businesses need to constantly adjust their strategy to minimize fraud losses, maximize revenue, and minimize operational costs.
The good news is that North American businesses have succeeded in controlling direct fraud loss (chargebacks plus credits issued due to fraud). But that achievement comes at a cost, because they are:
- Manually reviewing more orders
- Rejecting more orders
Fraud teams are looking to optimize their operations by:
- Being more efficient — in particular, by cutting the cost of manual review
- Turning away fewer genuine customers
- Further streamlining fraud management across all channels
Finding the right tools to automatically screen fraud is a key part of achieving that fine balance. A company can keep fraud low by deploying accurate automated detection and avoid unnecessary overhead by saving manual review for only the most ambiguous orders.
During the automated screening process, a combination of tools — including validation services, proprietary data, multi-merchant data, and device tracking — is typically applied to determine the likelihood of fraud.
See what CyberSource merchants are doing to balance their fraud so that they are not stopping good orders while at the same time keeping their fraud rate below 1%.
Hit me up and I will send you the 2016 CyberSource Fraud Benchmark Report!