Decision Management for Online Fraud Detection: Approve more purchases with greater loss protection
One of the largest areas of retail loss is in the fraudulent use of credit cards in online transactions. Many retailers address this issue through the use of Fair Isaac’s Falcon™ Fraud Manager for Merchants, part of Fair Isaac’s highly successful Falcon franchise of fraud detection and prevention products.
Merchants that sell goods or services by phone, mail and the internet assume 100% of fraud risk. And their fraud rates—resulting in lost merchandise, unrecoverable shipping expenses, chargebacks, and related fees and fines—are up to 20 times higher than those of businesses where credit cards are presented in person. Consequently, many merchants adopt conservative fraud prevention policies, which can result in worthy customers being turned down or inconvenienced enough to abandon purchases.
Using advanced predictive analytic capabilities, Falcon Fraud Manager for Merchants detects minute differences between valid and fraudulent orders. With increased precision—far beyond the capabilities of systems based solely on rules—you can safely implement more flexible policies that allow you to accept more business.
The benefits to retailers include:
· Increase sales by safely approving more transactions
· Reduce costs resulting from fraud losses and charge-backs by enabling intervention before fraudulent orders are fulfilled
· Improve customer satisfaction by reducing the number of legitimate orders declined or delayed for manual review
· Keep chargebacks within payment card association guidelines, reducing the likelihood of fines and protecting merchant card acceptance privileges
· Streamline operations and reduces costs by automating fraud prevention and focusing manual review on truly risky orders
Clients using Falcon Fraud Manager realize a combined savings from fraud loss and customer service expense of 30% to 50%.
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