Fraud Screening

Online fraud continues to rise and shows no sign of slowing down. Merchants need tools to maintain an acceptable level of fraud - one that does not result in excessive chargeback fines or allow fraudsters to ruin an online community. It is impossible to stop all fraud, but every online merchant should use several techniques to counter fraudsters, including:

• IP Geolocation
• Address Verification Service (AVS)
• Proxy Detection
• BIN Validation
• Black/White Lists

An Intelligent Feedback Loop

In addition to providing the techniques described above, Vindicia's fraud screening system has the added benefit of cross-referencing data across our worldwide network of merchants. When a user issues a chargeback or commits fraud at one of our merchant sites, that information feeds back into the fraud screening system for all of our merchants. Since Vindicia's fraud screening solution is informed by our database of chargebacks that we have processed across our merchant network, the system becomes more predictive everyday in identifying potentially fraudulent transactions.

Optimizing Fraud for Digital Merchants

For intangible goods merchants, fraud screening should be implemented with a light touch and fine-tuned on a regular basis. Particularly in the case of a subscription billing model, the cost of a fraudulent transaction is much lower than the cost of a false positive (i.e., declining a valid transaction). Our risk scoring calculates the overall probable risk of chargeback for each transaction throughout the screening process. Vindicia helps our merchants to strike a delicate balance of fraud screening that allows for an aggressive customer acquisition strategy while still managing fraud to appropriate levels.

Read More

• Vindicia packages its billing and fraud management capabilities into Vindicia CashBox.