New CyberSource release aims to find fraud faster and cut processing costs

Order velocity checking is one way to flag potentially fraudulent orders, and online merchants who don’t respond to suspicious patterns can risk running up a large number of unnecessary card authorization costs in a short time. New functionality from CyberSource aims to reduce merchants` exposure with new features in its automated order review system, Decision Manager 2.0, that allow quicker identification of fraudulent orders and better management of payments processing costs, according to the company.

Fraudsters frequently use e-commerce sites to test whether the numbers of stolen credit cards will be accepted for purchases. Online merchants that experience such account number testing incur the card authorization costs, but screening capacities in the new release can focus on order patterns within an individual merchant’s business and flag the merchant on changes in pattern.

Gray market sales, notes the company, resulting from individuals buying in quantity from a merchant site and reselling on auction sites or in other non-sanctioned channels, are placing pressure on some merchants` distribution agreements and causing channel conflict. To prevent that, rules in Decision Manager 2.0 can be set to alert a merchant, for example, when a selected product is selling in unusually high numbers to one individual or an individual using many identities.

Other features of the new release also cut unnecessary card authorization costs by halting order processing prior to payment authorization and first cross-matching the order information with information on a merchant’s negative list of fraudulent order histories.

The new release, says Robert Ford, CyberSource executive vice president and CTO, “brings order rate monitoring to a new level and integrates global and merchant-specific fraud models, helping merchants more quickly flag suspicious patterns.”