Fraud prevention: Opportunities for PSPs/ ISOs and acquirers

By Wolfgang Berner on 12. December 2013 in Market Insights
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Global e-commerce and m-commerce have grown tremendously over the last couple of years. As new sales channels and payment methods are introduced and the market is growing, merchants are more frequently targeted by fraudsters. This opens the opportunity for payment service providers/independent sales organizations and acquirers to show their expertise by helping merchants to reduce their fraud and to enable them to realize the best conversion rate possible.

Fraud and chargebacks – a threat to business
Fraud and chargebacks are core issues and a significant threat to merchants, acquirers and payment service providers/ independent sales organizations. Lots of times accounts with fake identities or multiple orders placed in a short space of time with different usernames cannot be detected effectively before the shipping process starts. In effect, the merchant loses money or even its merchant account, the PSP/ISO loses the trust and/or transactions of the merchant and the acquirer the transaction volume. The threat is international and ubiquitous.

Reality shows that merchants are often not seeking sufficient protection, which can lead to above described massive damages. And for payment providers it is almost impossible to stay on top of everyday business and at the same time continuously optimize the risk management of their merchants.

Fraud prevention has been a time-consuming and resource intensive task. In order to identify fraudsters, payment service providers/independent sales organizations and acquirers must have a solid understanding of typical fraud profiles in different countries, an appreciation of specific consumer buying behaviors and payment methods available. To maintain this level of expertise all payment service providers/independent sales organizations and acquirers have to invest a lot.

When faced with multiple ongoing fraud threats, the ability to quickly detect and defend against these attacks is absolutely essential. In order to do so, tailored fraud prevention solutions such as velocity checks have to be adopted. Fraud prevention solutions need to be appropriate to protect card transactions as well as alternative payment methods if necessary. Additionally, it isimportant to keep in mind that fraud protection needs a steady monitoring and optimization. The responsibility for this lies with both sides – the merchants and their payment service providers.It presents a great opportunity for the payment service providers/ISO and acquirer to show their competence and expertise towards the merchant.

OneClickSafe with PAY.ON
After 10 years of experience in fraud prevention PAY.ON has bundled the most proven risk checks into three packages to defend especially against card and direct debit fraud. OneClickSafe contains the latest and best protective tools against fraud and chargebacks and is constantly monitored and updated by PAY.ON. Acquirers and payment service providers/ independent sales organizations thus no longer need to invest in their own preventative measures against fraud and chargebacks to protect their online merchants.

PAY.ON’s OneClickSafecan now be tested, by selecting a risk package without applying it but analyzing its positive effects. Want to try? Contact your Account Manager in order to activate a free trial for the OneClickSafe what-if Mode.

Wolfgang Berner

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Wolfgang BernerView all posts by Wolfgang Berner

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