When it comes to choosing the best and most effective fraud solution for your business, you must determine your unique business needs first before you seek out a solution. Once you have done that, a trial needs to be performed in order to see how it interacts with your data. The only way to judge how that solution “performs” is to integrate and run a Proof of Concept or (POC).
Fraud is undoubtedly the most menacing foe to any merchant and it continues to grow in prevalence. The most common types of fraud that merchants have to contend with include: card cloning at 35% and unauthorized ATM transactions at 33%. The majority of fraud is reported within the e-Commerce space.
There are more than 4 million cases of e-Commerce fraud that are reported every year and a total of $250 million “embezzled”. This type of cyber fraud includes stolen credit cards, as well as information taken from customers, which has gone up by 25%.
In December 2018, credit card fraud increased by 69%, a significant risk to users.
Testing A Fraud Provider
When it comes to actually testing and evaluating a fraud provider, the process can prove to be quite costly and a merchant’s integration budget is limiting.
The solution to this problem is running a robust Proof Of Concept test. Merchants should seek out and consult with their fraud solution provider to determine what is required to ensure optimal performance. Some of the points of discussion include: how profound an integration is needed and the length of time necessary to run.
Payment orchestration is the newest solution that has been introduced into the payments industry. Basically, payment orchestration is the process of directing payments to the most effective processor for each transaction. This type of routing offers a wealth of benefits including reduced cost, improved speed, and reduced false positives. Furthermore, it is a framework in an “agnostic third party” or a merchant that links a variety of solution providers to the merchant’s overall system.
Although payment orchestration was originally limited to larger merchants, with in-house payment teams performing integrations into legacy systems, the system itself has been historically inefficient and a bit cumbersome to manage.
However, the landscape is improving and the market has been producing more modern payment orchestration platforms (POPs). These new and improved platforms now take all the critical payment functionalities that the merchant needs stacks them together in a much more efficient streamlined way. As a result, they are unleashing a boost of revenue, providing an improved checkout experience for customers, strengthening security, and liberating time and resources for merchants.
Looking into the future, it is clear that payments technology will continue to evolve within the next 5 years. Payments orchestration, in particular, will see steady growth as it picks up momentum. This will greatly benefit small and medium-sized businesses.