Fraud defence is a crucial part of the payment process in online transactions. It is a service that is provided by your payment service provider (PSP) also known as the 'Merchant of record'. It is a set of criteria that allows the system to automatically detect if a shopper is legitimate or a fraudster.
If you are using Merchant, you automatically have the benefit of leveraging Cleeng's fraud defense mechanisms. We have created a smart security system that efficiently takes into account the behavior of both regular customers and fraudsters to identify suspicious behavior based on industry benchmarks. Risk checks are triggered when there are multiple payment refusals within a specific time frame that exceeds the specified threshold Cleeng has set. Many risk checks require shoppers (or subscribers) to provide additional information on the payment to perform a better assessment of the transaction.
For example, a core practice for most fraudsters is to try many attempts close together in the hope that one will be successful. This risk check is aimed at identifying users whose rate of refusals fits the profile of a fraudster and blocks their transactions. Below are a few reasons as to why a payment attempt may be rejected:
- The card may not be honored (This is a generic refusal bucket used by issuers to refuse payment. Unfortunately, the reason can be several things. In all cases the cardholder should contact their issuing bank for clarification and a solution).
- The length of the CVC number is incorrect
- There may be insufficient funds on the card
- Multiple transactions may have taken place in a short period of time with the same IP address
- The card has expired
- The cardholder name is incorrect or may not be identical to the data on the card
If you are using Merchant and a viewer is having trouble making a purchase, please contact the support team and we will be able to look into the matter further. Alternatively, if you are also using Cleeng's Hi5 solution, your customers can contact the Cleeng Customer Success Specialist team to escalate the issues.