- Make the Year of the Rooster a Prosperous One January 26, 2017
- New Stats on CNP Fraud in Jewelry & Watches: the Silver Lining February 2, 2017
- Introducing the CNP Fraud Lexicon January 31, 2017
All posts with the tag Declines
For better and worse, we humans are not driven strictly by logic and self-serving interests. While decisions based on empathy, social norms and love allow us to have a functioning society, they often fail us when it comes to managing a business. In business, it’s important that we try to overcome psychological biases and instead strive to make the best decisions based on data and facts.
The work of behavioral economists is devoted, among other things, to identifying and explaining the psychological biases that lead us to make suboptimal decisions. In this post, I’ll introduce a couple of well known behavioral economics terms and will illustrate their application in the field of eCommerce fraud management.Read More
Despite being critical to the profitability and success of eCommerce companies, online risk management and fraud prevention is often assigned as a secondary task to the payments or customer service teams. In fact, many businesses are reluctant to hire a designated risk management professional or team and will only do so after being hit with a significant fraud attack.
In this post, we’ll outline the problems this pervasive mentality creates, and explain why adopting a different approach to risk management is financially worthwhile to your organization.
Stop letting AVS mismatches kill perfectly good orders
AVS (Address Verification System) was designed to combat CNP (Card Not Present) fraud. The idea behind this system is that cross-referencing the numeric portions of the billing address provided by the buyer with the numeric portions of the billing address on file at the credit card issuer would enable merchants to verify that the buyer is the rightful cardholder.
Payment processors encourage merchants to set automatic AVS mismatch filters as an anti-fraud measure. However, many merchants who use these filters do not realize that full AVS match does not ensure a transaction isn’t fraudulent, and on the flipside, orders with AVS mismatches are often legitimate. In this post, we will show why rejecting orders solely based on AVS information is a bad idea.Read More