With the basic checks that are included by default, you’re already pretty well guarded. Prevention technologies such as 3D Secure are already widely used.
However, if your business is internationally orientated, if you sell goods that can be resold quickly or if you offer digital goods you should also consider extended risk management.
This allows you to manage black and white lists, define parameters in a country-by-country manner, or set limits for minimum and maximum amounts. You actively control the risk and thus your turnover.
1. More revenue
Too rigorous prevention measures have a negative impact on sales, because honest transactions, so-called “false positives,” are also prevented. Well balanced fraud prevention systems filter out malicious transactions and sustain conversion.
2. Less costs
In the event of fraud, the merchant will not only incur the transaction costs. There may also be costs for returns, charge-backs of credit card payments, reporting, fraud detection, damage to reputation and more. As a result, the “Total Cost of Fraud” usually proves to be more expensive than external solutions such as our fraud prevention systems.
3. Higher efficiency
An automated fraud prevention system saves time and money because suspicious transactions no longer need to be manually verified.