Why it is important for merchants to onboard comprehensive fraud management solutions

  • Author -- MerchantRMS

The rise of digital payment methods has increased key complexities in fraud management, payment processing, and data handling. With global non-cash transactions set to grow 12%, reaching almost $1.1 trillion by 2023, the scale of payment supporting technologies is also set to expand. Merchants need access to the best anti-fraud, recovery, and prevention methods to keep up with rising consumer demand for a better digital payment infrastructure.

By onboarding a comprehensive fraud management solution, merchants and payment services providers can improve identification and remediation through higher data quality. Merchants gain access to a robust fraud analytics environment, through which they can access deep insights into the transaction lifecycle. Companies can leverage an anti-fraud platform to also empower recovery teams with the right data at the right time. 

The various types of payment methods are also expanding in scope, including digital wallets, card-based payments, mobile app payments, etc. This is a key reason behind the growth of global payments revenue at around 7.4%, along with increased digitisation and data protection. With the introduction of blockchain and digital currencies, fraud prevention may emerge even more challenging in the future. 

That is why merchants need to adopt a comprehensive fraud management platform, to ensure future-proofing of payment processing across all payment types. 

Greater agility in fraud detection

A key benefit of adopting fraud protection solutions is the greater speed at which fraud can be detected. With fraud recoveries being close to 25% of loss amount for a large majority of organisations, having the right detection tools can significantly strengthen this risk area. Merchants can emerge more agile when adopting a fraud detection tool, as they can access key insights into card types, customer behaviours, and payment methods leveraged to detect anomalies. 

With the rise of e-commerce and digital payments, merchants need to adopt the best fraud detection solutions to prevent the emergence of vulnerabilities in their networks. In fact, at 19%, it is one of the highest years of global adoption thereby introducing greater risk in payment method acceptance, false positives, transaction reviews, etc. Digital marketplaces are also set to account for close to 60% of digital-commerce value, making this space critical to managing effectively over the next few years. 

Another key area where agility is achieved is post-transaction analytics. While real-time monitoring is the key to enhanced fraud prevention, merchants also need the right post transaction tools to detect fraud. By understanding key signs of fraud, merchants can escalate potential fraud transactions for faster remediation.

Analytics-based approach to fraud management

Establishing fraud trends - Global fraud management platforms provide analytics and a data-driven approach, for optimal tracking, reporting, and categorising of key fraud information. They help establish key fraud data trends for merchants to better protect themselves across the payment lifecycle. Analytics-based fraud management also facilitates signature analysis, for better forensic insights for optimal payment handling. 

Expanding data capture scope - Merchants are also able to capture a larger breadth of fraud data when adopting a dedicated fraud management solution. There is a limited risk of ineffective data storage and accessibility, as fraud management platforms provide an integrated and unified solution. 

Comprehensive access to fraud data - Teams can seamlessly process fraud data business intelligence initiatives, through tier-based access to solutions. This ensures comprehensive data tracking and fraud detection, through access to richer data availability. Merchants can drive better fraud management through data-rich IP, network, proxy, and behavioural analysis. 

Critical impact on chargebacks and fees - The critical shift to digital payments is also increasing the cost of payment acceptance, which is set to rise 6-10% across high-cost channels. This also increases the risk of declines, frauds, chargebacks, and the overall cost of fraud-based services. While merchants are accepting the associated fees and compliances related to digital payments, they also need to onboard a fraud management platform for better protection. 

Real-time monitoring of payment data

Real-time monitoring of payment data is an important aspect of handling merchant fraud, as it provides faster insights at scale. 

  • Millions of data points can be analysed via a merchant anti-fraud platform, giving companies better fraud detection and prevention options. Real-time monitoring also drives greater efficiency in remediation, as the timeframe between detection and action is significantly reduced.  
  • KPI based parameters can also be established within the fraud detection model, with key real-time measurement and course-correction tools. Merchants can gauge the efficiency of their fraud prevention policies and technologies, through real-time KPI monitoring. Teams gain access to a richer library of fraud data, which can be referenced against for new transactions leading to better fraud prevention. 
  • Real-time monitoring is also critical to establish when accepting international payment modes for offerings. It can help streamline complexities within detection and reporting, to drive faster behavioural analysis and anomaly detection. With nearly 38% of global merchants losing close to 6%  of revenue to payment fraud, expediting the processing of key fraud indicators in real-time is critical.  

Key benefits of onboarding MerchantRMS

MerchantRMS provides merchants complete clarity into payment fraud activities by integrating analytics, expertise, and automation. Our solution drives greater visibility into payment processing activities, through the lens of fraud detection and payment data analysis. Merchants can also gain real-time insights into potential fraud sites while deriving key trends for better fraud prevention. 

Enhanced fraud detection – Our solution identifies critical fraud indicators at a much faster rate to detect fraud with greater agility. Key payment and user behaviours are logged into an analytics framework, for near-real-time insight derivation. 

Deep insights on transactions – Through the MerchantRMS transaction history tool, merchants can visualise transaction data better while exploring key insights into card types, daily payment options, potential fraud sites, etc. 

Unified fraud management – While merchants may be managing several distributed anti-fraud measures and technologies, MerchantRMS consolidates fraud management within a unified platform. This includes fraud data management, risk & controls setting, as well as trends identification. 

Active logging and analysing – By integrating MerchantRMS into payment handling protocols, merchants can benefit from an active handling of whitelisting/blacklisting, historical fraud trends, and dynamic updating of key fraud data. 

Comprehensive persona management – Using alphanumeric identifiers, merchants can derive the identities of customers for better fraud prevention. Data from various accounts, devices, locations, and businesses can be embedded within key personas linkages for better investigations. 

Connect with us at P: +1 416 962 0542, E: support@merchantrms.com, to initiate your fraud prevention program. Request a free demo today, to unlock the power of MerchantRMS data-driven fraud management. Our comprehensive solution provides the right tools to empower our global merchant network.