Introduction

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.

The Need for a Good Fraud Management Service

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.

MerchantRMS - The Answer to All Your Problems

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. 

iDashboard

MerchantRMS’s fraud analytics dashboard offers real-time data that you can use to make better decisions on two things.

1. To customize the rules to improve your fraud protection

2. 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.

Functions of iDashboard

• Set rules that match your industry’s requirements and monitor their efficiency
• Share data collected by the fraud analytics tools along with the various views with all your stakeholders
• With the help of key performance indicators (KPIs), assess the performance of all transactions
• Assess the performance of all reviewers in your workforce
• Apply the “what if” analysis to your business and analyze the dynamics that affect your business and market
• Export the dashboard as an image with ease 

Features of the User-Friendly Fraud Management Interface

• Access a broad view of the history that contains all transaction details
• Analyze informative charts that are easy to read and understand
• Provides detailed analysis from high-level charts to hour-wise transactions
• Shows data for any period dashboard ur needs
• Offers insights in different styles like;
  • Summaries
  • Trends
  • Filters
  • Lists
• Offers easy navigation through the dashboard with a few clicks only
• Delivers fast processing and movement from one section to another
• Eliminates any complex learning curves

Segments of MerchantRMS’s Dashboard

Listed below are the different segments and interaction points that are available on MerchantRMS’s fraud management dashboard.

1. Site Group

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:

• Pending
• Open
• On Hold
• Escalate 

2. My Review Box

This area shows all the transactions for the reviewer to review with the same indicators mentioned above.

3. Key Performance Indicators (KPIs)

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;

• Approved - Transactions that successfully pass the screening filters
• Rejected - Transactions that fail the authentication tests and might be related to frauds
• Review - Transactions that may potentially be fraudulent and may require manual reviewing
• Chargebacks - Transactions that the customer has challenged

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.

• Making the rules stricter - May lead to an increase in the number of false declines
• Making the rules lenient - Two further possibilities may occur:
  • Acceptance of fraudulent cases may take place, which would eventually lead to more chargeback
  • May lead to more manual reviews

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.

4. Nexus Summary

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.

5. Bin Card Summary

This section provides data on the transaction status (good, fraud, and chargeback) based on the type of credit card like Visa, Maestro, etc.

6. Transaction History

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.

7. Browser Overview

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.

8. Rule Performance

This dedicated section displays a detailed analysis and risk score on all the rules you created for your online payment fraud protection system.

9. Reviewer Summary

Analyze the performance of all the reviewers in your team with information like total transactions, fraud cases found, and time spent on each review.

10. Improved Advanced Search

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.

11. Rule Engine

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.

12. PSPID

The PSPID feature allows you to add, delete, and manage all your websites in a site group.

13.  Activity Log

Displays all the activities and actions performed by every member of your team.

14.  Alert Policy

Gives you information on all the alerts triggered along with their reference IDs.

Conclusion

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.

Frequently Asked Questions (FAQs)

1. What is fraud analytics?

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. 

2. What is a fraud management system?

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!