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V.P. of Strategic Planning
Internet commerce continues to grow in importance, presenting more opportunities for retailers to reach a seemingly unlimited number of customers throughout the world. With those increased opportunities comes the dark side of the web-the ever-evolving tools of the criminal trade designed to steal data from the retailer and their customers.
Just as the Internet is growing and changing, so is organized retail theft. Now more efficient and dangerous, retail thieves are positioned to cost online merchants billions. "My 20 years in this business has taught me that fraud doesn`t go away; it just gets more sophisticated, so as a retailer you have to be very quick and proactive to guard against new fraud trends," says Stephen Kuzio, vice president of strategic planning for ClearCommerce/Certegy, a Fidelity National Information Services Company, which provides enterprise-class fraud prevention and payment processing technology designed to manage and protect card-not-present payment transactions.
"Retailers must be flexible enough to protect their systems against fraud, wherever and whenever it appears," Kuzio says. "At the same time, they must be able to differentiate between the increasingly complex forms of online fraud and the incidents that raise suspicion of fraud but are actually the good consumers."
A Comprehensive Suite of Fraud Protection
ClearCommerce® is addressing the complicated world of e-commerce security with the recent launch of ClearCommerce Version 5.10, a comprehensive suite of products covering payment processing, fraud management, and order review.
Offered in both a licensed and CommercePointe® hosted model, the solution can be combined with retail, risk, and fraud analysis, as well as third-party data sources, to provide the retailer with one flexible solution. "Our technology was designed with an extensible architecture that can adapt to current best practices," says Steve Daniel, senior product manager for ClearCommerce/Certegy.
Each of the applications that make up Version 5.10 offer an extremely reliable, scalable, and extensive functionality, enabling the merchant to capitalize on the growth potential associated with selling online.
PaymentDirector™ is the solution’s mechanism for providing efficient, multichannel payment processing. With interfaces to major processors, this component of 5.10 enables retailers to process transactions in a variety of ways, such as through ACH, a capability added with the new 5.10 Version. ACH processing can be an added benefit and inexpensive alternative for the retailer, since ACH payments have significantly lower transaction fees when compared to the expense of credit card interchange fees.
Additionally, the 5.10 Version offers the retailer an interface for payer authentication, which provides cardholder authentication for chargeback protection, interchange reduction, and Maestro card capability.
In today`s world, retailers require and demand secure online transactions. ClearCommerce Version 5.10 addresses those security issues and meets compliance standards for the following: Payment Card Industry Data Security Standard, commonly known as PCI; Payment Application Best Practices; User Auditing; Secure Transmission, Access and Storage; and Password Management.
FraudShield® provides a comprehensive, integrated fraud prevention suite that allows merchants and e-commerce service providers to protect their businesses and customers from the threat of fraud attacks.
FraudShield employs a suite of tools and strategies to manage an e-retailer`s fraud, including: Analytical Modeling; Rule Weighting; Negative and Positive Lists; Geolocation Tools; and the use of non-standard data and processes.
Order review is an important part of the fraud management process. The ClearCommerce order review product, RAPIDReviewer™, works alongside FraudShield, for a tightly integrated order screening and review solution. RAPIDReviewer provides the retailer a more comprehensive and queue-based prioritization, investigation, and disposition of orders needing fraud review.
A State-of-the-Art Combination
One of the most important attributes of Version 5.10 is its flexibility, as well as its ability to integrate tools and information from different sources to protect the merchant from fraud losses. ClearCommerce provides managed services to implement, operate, and continually tune these fraud detection processes with their expert fraud analysts. Driven by an e-retailer`s goals, processes, and metrics, ClearCommerce puts the fraud-prevention company`s analysts to work to stop fraud without blocking the merchant`s legitimate business. "It is just as important to identify the good transaction, so you don`t risk losing a valuable customer," notes Kuzio.
Keeping Ahead of the Criminals
The number of organized fraud rings is increasing at alarming rates; even more disconcerting is the ease with which they carry out their attacks on retailers. Kuzio notes that, "Criminals now realize that for a couple of hundred dollars, they can buy an inexpensive computer, conduct one or two fraudulent transactions valued at far more than the hardware, abandon the computer, and thwart the tracking efforts of merchants and/or authorities." He continues, "Now with the adoption of mobile payments on the horizon, it may get even easier for a criminal, who can pick up a cell phone for a few dollars, commit a few fraudulent transactions and then abandon it. In order to be effective, the retailer`s fraud technology must keep up with the changing tactics of the criminal. The merchant has to stay one step ahead, not just through technology but though transaction analysis utilizing non-traditional data and methods."
"Online merchants have to make data-driven risk management decisions, as well as expert-driven ones, and they need the tools to make those decisions," Kuzio says. "That`s how they will keep ahead of criminal activity and become an effective fraud deterrent."
ClearCommerce has designed an adaptable solution that allows retailers to manage their risk of doing business online with the most up-to-date technology and strategies available.
To read more about ClearCommerce® 5.10, go to www.commercepointe.com