With the development of AI, the industry is seeing an acceleration of payment fraud attacks.
Such incidents can significantly increase your chargeback rate, potentially leading to substantial chargeback fees and severe penalties from VISA, MasterCard, and other payment processors.
Regardless of your current fraud exposure, security measures are preventive to help you tackle any fraud attacks you may be facing. Merchant provides defense mechanisms that efficiently assess the behavior of both regular customers and fraudsters to identify suspicious behavior based on industry benchmarks.
Here is a list of the security measures our customers benefit from when they use Merchant:
1. Enhanced Security Against Credit Card Fraud
Protecting your transactions from credit card fraud is paramount. If you're currently using Cleeng’s MediaStore SDK Components or MediaStore API, we strongly advise upgrading to Adyen advanced flow at the earliest to leverage its enhanced security features.
2. reCAPTCHA
As fraud becomes more and more automated, reCAPTCHA is a must to fight bot attacks and keeps effective in many cases. We have enabled a new Captcha feature both at the registration phase and at the purchase stage.
3. Payment Session Throttling
This throttling mechanism to APIs related to payment sessions automatically controls the rate of session requests, reducing the risk of unauthorized access by limiting session activity within specified time windows. It prevents excessive session attempts, which could otherwise be used for fraud attempts.
4. AI-Enabled fraud scoring
Leveraging historical data from other merchants in partnership with our PSP partners, Merchant uses Artificial Intelligence to learn about complex fraud patterns and block fraudulent behaviours. This feature has been effective for all clients that implemented it, significantly driving chargeback rate downwards.
5. Partial billing address
Adding a mandatory ZIP code field to your checkout will allow you to comply with the AVS (Address Verification Service). The AVS can verify on the backend that the billing address entered by the customer is the same as the one associated with the cardholder’s credit card account. We highly recommend to enable this new data field because it provides:
- Better detection of fraud as the more data, the better Merchant can assess if a payment is suspicious or not
- Better acceptance rate as Issuers have more confidence in allowing a payment with user address information than without
It is to be noted that stricter additions like a) requirement of full postal address or b) strict rejection rules linked to postal code mismatch from processor can also be taken as next steps if fraud persists.
6. Standard and custom risk rules
Every transaction is scanned by our risk rules which assign a score to the transaction if it meets a certain criteria such as “issuer country is different from shopper country”. If the total score reaches 100 then the transaction is automatically blocked.
Besides “standard” rules, Merchant also monitors specific fraud patterns to implement “custom” risk rules, meaning for example that all transactions coming from a specific country request CVC or 3DS for a specific customer because we found a spike in fraud in this specific country without a clear pattern other than a very localised attack.
If you would like to know more about our fraud detection measures, please contact our sales team.