Integrating a fraud detection and prevention system into your RMS payment gateway is critical for online fraud protection. But how can you assess your fraud prevention system to check if it’s working effectively? That’s where fraud management systems come into play!
Did you know that the losses due to online payment fraud are expected to increase by 18% between 2020-2021, reaching a value of around $20 billion? Therefore, running an online business while constantly being threatened by fraudsters is nothing short of an astonishing feat!
Naturally, you would turn to a fraud detection and prevention platform to help you catch fraudsters and prevent any fraud. However, there may be times when the fraud prevention system also leads to a few losses. These losses are in the form of false declines and chargebacks.
A good fraud management solution, like MerchantRMS, provides detailed analytics and insights on a user-friendly dashboard that can help you assess the performance of the fraud protection system, reduce the number of false declines, and decrease the amount of revenue lost due to fraud and chargebacks.
An over-ambitious fraud prevention platform might like to play it safe at all times. This approach leads to a greater number of cancelled transactions that could possibly be initiated by genuine customers. Such instances are known as ‘false declines’.
"Statistics show that every year, businesses lose 3% of their revenue to false declines alone!"
Additionally, false declines also cause a loss in customers and the brand name.
To eliminate such errors and inconsistencies, you should incorporate a fraud management system that allows you to monitor fraud protection activities.
An inefficient payment fraud protection system might lead to more losses for your company. On the other hand, a good fraud protection services platform will prevent fraudulent activities on your website and offer fraud risk management services.
MerchantRMS is a one-stop destination that provides solutions to all your fraud-related problems.
MerchantRMS’s fraud analytics dashboard offers real-time data that you can use to make better decisions on two things.
To customize the rules to improve your fraud protection
To improve the overall working of your business by reducing fraud and chargeback rate and increasing the number of successful transactions
Every time a customer proceeds to purchase on your website, their details pass through the fraud detection system’s filters. Fraud analytics give information on the status of all these transactions that take place.
Efficient fraud management includes data collection throughout the screening process and forming patterns based on it. These data and patterns are then presented to you in the form of actionable insights on the dashboard.
In MerchantRMS’s rule engine, you can customize the various rules and variables in the pre-designed templates to tweak how the fraud prevention system operates. On our iDashboard, you can monitor the impact of these rules. This way, you can fine-tune the rules to improve the efficiency of the RMS payments fraud detection.
Listed below are the different segments and interaction points that are available on MerchantRMS’s fraud management dashboard.
Generally, companies and payment service providers who work with multiple businesses need to group their merchants into different groups as each business will require different rules. MerchantRMS allows you to do so with site groups.
In this section, you will find statistics on all the transactions that take place on your website. The transactions are segregated based on their progress or result after passing the filters of the fraud detection system. The indicators for the transaction progress are:
This area shows all the transactions for the reviewer to review with the same indicators mentioned above.
Setting fraud prevention KPIs is a vital part of catching fraudsters. These indicators help you identify and prevent fraud, increase the number of successful transactions, and reduce the number of chargeback cases. Our dashboard gives you a bird’s eye view of the reviewer’s KPIs so that you completely understand the areas that require the most attention.
The most commonly used KPIs are;
You can set different KPIs to get a broader understanding of how your transactions are dealt with. With the results, you can change the indicators to improve the performance.
However, make sure that you strike the right balance while making changes to these rules to minimize cost line add. Here are the possible scenarios that might occur if you don’t manage to strike the right balance.
An increase in the number of manual reviews negates the purpose of the fraud protection system in the first place. It also increases the operating costs and causes overloaded review pipelines.
MerchantRMS’s Nexus looks past the credit card numbers and finds similarities between transactions that may seem unrelated.
The Nexus Summary section on the dashboard shows its progress in real-time by categorizing them as low-risk and high-risk transactions.
This section provides data on the transaction status (good, fraud, and chargeback) based on the type of credit card like Visa, Maestro, etc.
For any given period, you can view the number of transactions along with their status. The fraud management interface also offers features allowing you to zoom in and out, add filters, export the data, and many more.
Just like the card summary, this section offers a breakdown of information on the transactions taking place in different browsers like Chrome, Safari, Firefox, etc.
This dedicated section displays a detailed analysis and risk score on all the rules you created for your online payment fraud protection system.
Analyze the performance of all the reviewers in your team with information like total transactions, fraud cases found, and time spent on each review.
MerchantRMS makes searching easy for you with the advanced search option. Using filters like contains, equal, and not equal, you can easily search for any transaction.
The rule engine contains all the rules that you created for fraud prevention. You can manage, edit, and create new rules in this section.
Once you create and edit all your rules, you can combine a set of rules to form templates. You can then assign these templates to any site group or industry.
The PSPID feature allows you to add, delete, and manage all your websites in a site group.
Displays all the activities and actions performed by every member of your team.
Gives you information on all the alerts triggered along with their reference IDs.
Working with a highly efficient fraud management tool can help you manage your rules and KPIs, track the performance of the system and your team members, reduce the false decline cases, and enhance your brand name.
MerchantRMS can help you achieve all the benefits of a good fraud management system and more. We have helped other businesses from different industries reduce chargeback amounts and increase payment approval rates as well. So, don’t lose out on your revenue to fraudsters, and book a demo with us to gain the first-hand experience.
Fraud analytics is a feature of a fraud management solution that incorporates various analysis techniques and approaches to prevent, manage, and track online payment fraud.
With MerchantRMS, you get a bird’s eye view of fraud analytics right from your dashboard.
A fraud management system is an interface that contains a big chunk of data and displays it in the form of actionable insights for the user. The system offers a one-stop destination for all activities like monitoring and controlling fraud-related processes.
MerchantRMS is a comprehensive and easy-to-use credit fraud management system that helps you minimize risk and maximize revenue!