Credit card fraud is big business. Luckily, so is fraud protection.
Selecting the best fraud protection service is critical to your business’s efficiency and profitability. But before you choose, consider the options and understand how they can maximize financial return while ensuring peace of mind.
How do you differentiate among the competitors? Below are the top five questions to ask to make the best choice.
1. Should I Screen All Credit Card Transactions?
Is it necessary to screen every transaction that comes through, or can only the suspicious-looking ones be vetted?
It might sound efficient to scrutinize only the suspicious transactions, but what do suspicious transactions really look like? As fraudsters become more sophisticated and malware programs become more subtle, fraudulent transactions are becoming much harder to spot.
For example, it’s not unheard of for a thief to use legitimate information and ship a package to the cardholder’s own home – and then steal it from the doorstep. This would never be caught by casting a “suspicious transactions only” net.
Luckily, the best fraud protection programs keep up with the latest trends in fraud behavior – identifying fraudulent transactions that might not appear suspicious at first glance.
To do this, though, that program needs to be able to monitor the big picture patterns that occur across the entire sum of your transactions. By learning what’s normal and what’s not for your business – and a host of businesses across industries and markets – the fraud solution becomes truly intelligent and better positioned to predict future behaviors.
As a result, this intelligent fraud solution is able to catch people trying to defraud your business – before it even happens.
The bottom line? It benefits you and your bottom line to review all orders before shipping.
2. Is Manual or Automated Screening Better – or Both?
Technology does amazing things. It may seem faster – and cheaper – to screen transactions using only an artificial intelligence solution.
However, automated fraud screening often results in one of two problems: higher rejection rates and a loss in sales, or increased fraudulent transactions and higher chargeback rates.
As fraudsters become more sophisticated and malware programs become more subtle, technology alone isn’t enough to combat fraud. It’s too easy for important details to get past automated screening processes – or the converse, for an automated system to set the bar too high and reject legitimate transactions that might share one or two characteristics of fraudulent transactions.
On the other hand, it’s not easy (or cost-effective) to manually screen every transaction. What if a fraudulent transaction is missed? What if order volumes spike? Do you really have the staffing to dedicate to this time-consuming process?
Alright then … if neither extreme works, what’s the solution?
Enter the hybrid solution – a combination of machine-learning algorithms plus staff trained in fraud validation and transaction investigation, resulting in a sophisticated system capable of analyzing fraud attack patterns and order behaviors.
With experienced staff supplementing the automated screening, fewer fraudulent transactions make it through, providing the optimal balance between security and increased sales.
3. How Does Fraud Protection Integrate With My Existing Technology/Online Shopping Platforms?
With a multitude of major e-commerce platforms available, including Shopify, Magento and WooCommerce, the best fraud protection system is one that works with the platform you use.
Look for a system that offers plugins and guides for all the major platforms, so you’ll have fewer integration issues and less need for hands-on management. And that means more time to spend on building your business.
4. How Can I Minimize False Declines?
This is a close cousin to the “manual versus automated screening” question. Data shows that stringent automated screening can cause legitimate transactions to be declined based on pre-established criteria. Using a hybrid, balanced approach can eliminate this issue.
The goal is to approve all legitimate sales; combining rapid automated tools and experienced human analysis helps accomplish this. As a result, a comprehensive fraud protection program means that high rejection rates are no longer part of the cost of doing business.
5. Does the Fraud Protection Solution Offer a Guarantee?
In today’s e-commerce world, it’s essential to practice fraud risk management. It’s just smart business. Select an antifraud service that features a comprehensive risk management system to help:
- Improve transaction approval rates
- Reduce false declines
- Decrease chargeback ratios and fraud-related chargeback costs
- Shorten response time
A service that provides a 100% reimbursement of any fraud-related chargebacks that the service approved can offer an important level of confidence and peace of mind, since you’ll know that even if a fraudulent transaction slips through the cracks, your profits won’t be held ransom.
Evaluating the Best Fraud Protection Solution
Fraud management can easily draw focus away from your core business. Don’t let it.
When it comes to choosing an e-commerce transaction security platform, a trusted, fully outsourced solution that approves the right transactions can free you and your staff to concentrate on other important business matters.
Protect your customer relationships and deliver seamless purchasing experiences by employing a system that avoids false declines, reduces fraud risk, and minimizes chargeback losses.