By now, every business owner is well aware that payment fraud is on the rise. Recent research suggests that card-not-present (CNP) fraud rose 40% in 2016.
Criminal fraud—someone stealing a credit card or using a card without authorization of the actual cardholder—makes up a portion of CNP fraud. But businesses should also be aware of “friendly fraud” claims (legitimate purchases that are later disputed by the customer because they’re dissatisfied with the product they received).
Your business needs a full stack of payment fraud detection tools that will protect your revenue at every phase of the buying process, from the moment of purchase to well after the sale. Insufficient protection at any stage of the game will result in unnecessary losses—and could even impact your company’s ability to process credit card transactions in the future.
Few payment gateways provide high-level protection for all types of payment fraud, but BlueSnap does. Here’s how.
Payment Fraud Management Done Right
BlueSnap’s payment fraud detection tools cover all three phases of the buying process:
Phase 1: Stopping criminal fraud in real time.
In this phase, your goal is to identify if a card is being used fraudulently—without authorization from the actual cardholder—at the moment the order is being placed.
We’ve integrated sophisticated fraud detection tools from industry leader Kount directly into our All-in-one Payment Platform. Kount’s fraud-fighting technology analyzes every transaction against hundreds of data points in less than 300 milliseconds, so you instantly know whether a transaction is legitimate or not. And because mobile fraud patterns don’t always look the same as fraud patterns online, it uses a separate set of criteria to identify, validate, and authorize mobile purchases. Every merchant is different—so if your business has more complex needs, you can also customize your fraud prevention strategy with one of our enhanced service options.
All BlueSnap customers benefit from this payment fraud detection technology, which greatly minimizes the number of fraudulent transactions that actually get processed.
Phase 2: Resolving disputes before a chargeback occurs.
Once a sale is made, your goal is to avoid chargebacks—and the fees associated with them. The more chargebacks you incur, the higher the fees; at some point, you may even lose your ability to process credit card transactions.
Talk to us about how a single connection to BlueSnap can meet all your payment processing needs and provide extra-strength fraud protection.
To resolve issues before they become chargebacks, BlueSnap has two types of alerts:
- Notifications of a reported dispute. Whenever a cardholder contacts their bank about a dispute, we get notification from one of our partner companies, Ethoca or Verifi, and pass that information on to you. That gives you a window of time in which to either issue a refund or contact the customer to resolve the dispute before it becomes a chargeback.
- Notifications about lost/stolen cards. When issuing banks replace credit or debit cards that are believed to have been compromised, they notify Visa or Mastercard of the date it was replaced. Then, Visa and Mastercard report to BlueSnap, informing us of every transaction that was processed on the old card number after it was reported stolen (transactions that are highly likely to be fraudulent). Having advance notice gives you time to take action before the card issuers initiate the chargeback process.
Notifications like these can prevent up to 40% of fraud and non-fraud related chargebacks, so you keep more sales.
Phase 3: Disputing chargebacks after you receive them.
If you do receive a chargeback, we make it easy for you to challenge it. Our online CaseBuilder tool, provided through our partnership with Chargebacks911, is easily accessible in the BlueSnap console. It helps you build a case against chargebacks you believe are invalid, prompting you to provide the required information, along with supporting documentation that will give you the best chance of winning. We’ll submit the information for you and notify you when a resolution is reached.
Or, if you prefer, BlueSnap and Chargebacks911 can handle the disputes for you. We’ll automatically challenge chargebacks that seem unjustified, which lightens your load while still giving you a way to protect yourself from friendly fraud.
Looking for a payment gateway with the most complete fraud stack?
Online payment fraud is a costly issue, but it can be managed successfully with the help of the right payment gateway. BlueSnap has the most complete fraud solution in the industry, fully integrated with our All-in-one Payment Platform. As a BlueSnap customer, you’ll have access to all our payment fraud detection tools, without any additional work on your part.
To find out how our tools can solve your own company’s payment fraud management challenges, talk to us!