FRAUD PREVENTION MONTH: Finding the right merchant fraud prevention partner

Retail professionals face the constant challenge of merchant fraud – fraudulent transactions that target online businesses. Protecting your bottom line and maintaining customer confidence requires a robust fraud prevention strategy and a trusted partner. Here’s your guide to sourcing reliable merchant fraud prevention solutions providers

1. Understand the Nature of Merchant Fraud:

Knowledge is power. Familiarise yourself with common merchant fraud tactics, such as card-not-present (CNP) fraud, identity theft, friendly fraud (chargebacks), and triangulation scams. This will help you identify providers specializing in the areas most relevant to your business.

2. Look for a Hybrid Approach:

Seek providers that blend advanced technology with expert human review. AI-powered fraud detection systems can analyze massive volumes of data in real-time, flagging suspicious transactions. However, human analysts are crucial for investigating complex cases and verifying flagged orders before they’re declined.

3. Emphasize Customisation:

Your business is unique. One-size-fits-all fraud prevention solutions may leave gaps in your defenses. Choose a provider that offers tailored solutions, allowing rule-based filtering and risk scoring to be customized based on your specific business model and fraud patterns.

4. Prioritize Data Protection:

Customer data security is paramount. Verify that the provider adheres to strict data protection standards, complying with industry regulations like PCI-DSS and GDPR. Robust security measures must be in place to protect sensitive customer information.

5. Demand 3D Secure Integration:

3D Secure (e.g., Verified by Visa, Mastercard SecureCode) adds an extra layer of authentication for online payments, shifting liability away from the merchant in certain cases. Ensure your chosen provider offers seamless integration with 3D Secure protocols.

6. Assess Chargeback Management Capabilities:

Chargebacks are a major pain point for merchants. Choose a provider that offers proactive chargeback prevention tools and expert assistance in representing your case if a chargeback does occur.

7. Seek Industry Endorsements:

Verify the provider’s reputation through industry reviews, accreditations, or awards. Look for affiliations with organizations demonstrating their commitment to merchant fraud prevention.

8. Insist on Transparency and Clear Pricing:

Seek providers offering upfront, transparent pricing structures. Be wary of hidden fees or complex contracts. Understand exactly what you will be paying for, including implementation costs, transaction fees, and chargeback management services.

9. Foster Open Communication:

Treat your provider as an extension of your team. Look for partners that value communication and are willing to provide regular updates on fraud trends, performance metrics, and proactive strategies for protecting your business.

By following these top tips, retail professionals can confidently navigate the selection process and find trusted merchant fraud prevention solutions providers. Partnering with a reputable provider will shield your online business from the ever-evolving threat of fraud, ultimately boosting your profitability and safeguarding your customer relationships.

Are you searching for Fraud Prevention solutions for your organisation? The Fraud Prevention Summit can help!

Photo by Kaleidico on Unsplash


Stuart O'Brien

All stories by: Stuart O'Brien