Effective fraud prevention and great customer experience are not mutually exclusive
Implementing effective fraud prevention and delivering an excellent shopping experience seem to be conflicting goals. Strict fraud filters can not only cause friction in the checkout process but also jeopardize revenue with an increase in false declines. On the other hand, loosening up on fraud prevention to enable a better shopping experience with less friction can open up merchants to more undetected fraudulent transactions and increase their chargebacks. Fortunately, there are effective ways to balance customer experience and fraud control without compromise.
Here are a few ideas to consider:
- Encourage open communication between the members of your team who are tasked with controlling risk and those in other groups who might unknowingly be increasing your level of exposure. For example your Fraud team and eCommerce teams can learn to balance their objectives - but only when working together.
- Opt for a fraud control platforms that combines risk management and payment processing to create a pain-free and fraud-free checkout experience for your customers. A dynamic risk management database—one that leverages millions of customer profiles, machine learning, and threat analytics from several verticals—enables you to accurately distinguish fraudulent from legitimate transactions in mere seconds.
- The goal is to frustrate and stop the crooks - not legitimate customers. Data is king. There is truth in trends, and power in patterns. A fraud control system that has access to extensive consortium data will naturally produce more precise machine learning and artificial intelligence models. It's one of the best ways to stop the bad guys and protect customer experience at the same time.
With new technologies, a change in mindset, and a few tweaks to your processes and systems, you can prevent fraud losses and keep your customers happy and loyal.
About Vesta:
We're pioneers in fraud protection and fully guaranteed payment technologies, helping online merchants, major telcos, payment processors, and acquirers optimize revenue by eliminating the fear of fraud. Our flexible, scalable solutions enable companies to grow their businesses by focusing on revenue rather than risk, delivering secure, frictionless transactions that maximize acceptance and improve customer experience – all backed by a zero-fraud-liability guarantee.