How to Stop eCommerce Fraud Before It Happens

Fraud prevention and risk management have come a long way.

Fraud prevention and risk management have come a long way since the early 90s when the very first online transaction was processed. Nowadays we have sophisticated fraud detection algorithms to help you reduce the number of fraudulent transactions and the chargebacks that follow. 

Credit card brands such as Visa and MasterCard closely monitor chargeback activity on all merchant accounts. Every chargeback is not only a financial loss, but it also increases your chargeback ratio (the number of chargebacks-to-transactions) which is required by the card brands to be kept under 1%. Recently, one of our travel merchants almost got shut down because of recurrent chargeback activity on their account. By placing fraud detection before the transactions were authorized and advising them to review all high risk transactions before they get settled, this helped diffuse the situation and has put them on the path of eliminating the ongoing chargeback penalties from the card brands.

GlobalOnePay's built-in fraud detection and scoring engine automatically determines the risk of every transaction. Because online fraud is always evolving, our solution adapts to emerging fraud patterns. It's safer, smarter payment processing. Here’s what the scoring engine does for you:

  • Reduces chargebacks by identifying and flagging risky orders
  • Responds dynamically to new fraud trends to provide ultimate protection
  • Gives you complete control over whether to accept, reject or manually review transactions
  • Uses geolocation to match an IP address to a region
  • Detects risky activity even if there was none before

How GlobalOnePay’s Fraud Detection & Scoring Engine Works

Our platform helps prevent online fraud by assigning a Risk Score to each transaction. This determines the probability of suspicious behaviour and alerts you when action is required. This is how it works: 

  1. A customer places an online order through your website.
  2. Your website transmits IP address, billing city and state, email, BIN and other data to GlobalOnePay's Scoring Engine.
  3. IP address, email address and other unique identifiers track the customer across our Global Authentication Network.
  4. A Risk Score and other critical data are returned to you in real-time, instantaneously determining the likelihood of fraud.
  5. Based on your risk threshold, you can automatically accept, reject, manually review or forward the order to a complimentary fraud prevention service.

Our solution is seamless and invisible to the site's visitors. We invite you to contact us for more information.