Outsourced Fraud Protection Can Stand Alone or Bolster In-House Efforts
The number and value of fraud attempts against CNP merchants is rising, according to the 2016 True Cost of Fraud Lexis Nexis Report. Merchants of all sizes face this growing threat, including solopreneurs without in-house fraud analysts, enterprises with large fraud-abatement departments, and everyone in between. Fully outsourced fraud prevention is the best option for smaller businesses without staff resources to spot fraud, and it’s a valuable tool for enterprises seeking to supplement, validate, and improve their own fraud-management practices. Here’s a look at the role outsourced fraud protection can play for businesses large and small.
Turnkey total fraud protection service for SMBs
The elimination of chargeback liability and access to comprehensive current fraud defenses are potential lifesavers for SMBs. Too many new and small businesses mistakenly assume criminals won’t target them, only to find themselves facing costly chargebacks and chargeback ratios that endanger their banking relationships. Other SMBs implement broad transaction rules—such as blocking all transactions from a particular country or region--that eliminate some fraud risk but may cost more in terms of lost legitimate business.
Every business needs to use their limited time and resources as effectively as possible. Outsourcing fraud management takes the burden of shifting focus to worry about chargebacks and fraud off your plate, giving you the ability to stay focused on your core business and do the work that serves your customers.
Fraud-prevention expertise for enterprise
At the enterprise level, most merchants devote considerable time and resources to improving their data mining, optimizing manual review, and recruiting and training fraud analysts. There can be substantial cost savings associated with transitioning to a fully outsourced fraud solution. For businesses that prefer to retain an in-house fraud department, however, a third party service can serve as a partner that provides another layer of transaction security and accountability to investors.
For example, large merchants with in-house accounting departments typically have an outside firm review accounts to ensure there are no errors or discrepancies. This practice assures stockholders, regulators, employees, and customers that the company is responsible with its resources. Likewise, working with an outside fraud protection partner can assure investors, staff, and customers of the company’s fraud-prevention diligence.
Working with a third-party fraud expert can also reduce the interdepartmental conflicts that may arise between in-house sales and fraud teams. A neutral partner with expertise in both fraud abatement and false decline reduction can present the best solution for each situation. This can help promote teamwork within the company while improving the bottom line.
Advantages for businesses of all sizes
Of course, fully outsourced protection delivers a number of advantages to businesses of any size. In the case of ClearSale, our Total Guaranteed Protection service shields clients from the costs of fraud-related chargebacks and false declines to protect their bottom lines and chargeback ratios. Our 700-plus employees deliver an industry-leading combination of machine learning and human intelligence to not only spot fraud and validate legitimate purchases but also to keep pace with emerging fraud behaviors and the intricacies of friendly fraud schemes. Our solution also lets businesses make headway into international and cross-border markets without assuming undue fraud risks or turning away valid offshore customers.
Whether your business has in-house fraud protection or not, the advantages of working with a comprehensive and experienced fraud services provider are clear: less fraud, no fraud-related chargeback costs, fewer false declines, and assurance for your customers, investors, and employees that your business is dedicated to defending itself against the rising tide of CNP fraud.
Ready to learn more about how our outsourced fraud solutions can help your business? Call us at 1-786-888-4584 or email firstname.lastname@example.org.