CyberSource, a Visa owned company, announced today (Oct. 20) the launch of Decision Manager Replay — a real-time fraud analytics tool that enables merchants to both analyze and adjust fraud management strategies.
“Merchants create rules and parameters in their fraud management systems that determine whether a transaction is accepted or denied, based on risk levels,” said Andre Machicao, senior vice president of CyberSource, a Visa Inc. company. “In some cases, the parameters they set might be overly cautious, causing them to lose legitimate, safe business unnecessarily. CyberSource’s new capability allows merchants to back test prior transactions to see what would have happened if they had set different rules.”
This tool also gives merchants the ability to run “what if” fraud strategy analysis. This means that merchants can test the effectiveness of their fraud strategies by running a batch of recent transactions through this new tool, which gives them the ability to re-test for fraud based on a variety of risk levels.
Using CyberSource’s fraud analytics, the system can then reconfirm which transactions are fraudulent, and which transactions may have been flagged (and denied) but weren't actually fraudulent. Because the analysis takes only a few minutes, the real-time analytics tool then gives merchants the chance to adjust their strategies in order to avoid denying valid transactions. They can also pass along that data to fraud analysis for additional review.
In the 2015 CyberSource North American Fraud Benchmark Report, it noted that, on average, 27 percent of online orders received by a merchant will be routed to fraud analysts for additional manual review. Of those transactions, roughly 85 percent are deemed valid and accepted. That's where the Decision Manager Replay tool comes into play to save time and money.
“As our business and overall volumes grow, unfortunately fraudulent activity also increases,” said Jamon Whitehead, senior manager of payment and risk operations, Backcountry.com. “Right after we deployed Decision Manager Replay, we were able to more quickly and accurately fine tune our fraud management system to provide more predictable results – which has improved our bottom line without impacting our customer experience.”
The Decision Manager Replay tool is available now and adds on to CyberSource’s online fraud management platform for merchants — Decision Manager. Decision Manager includes insights from more than 60 billion online and offline transactions processed annually by Visa and CyberSource.
“The organized crime rings behind so many of the fraud attacks are able to nimbly evolve their strategies,” said Julie Conroy, research director, Aite Group. “It is more important than ever for merchants to have similar tools, so they can quickly bring data intelligence into their defensive strategies with minimal impact on the customer experience.”
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