Lens Direct is projecting year-over-year sales growth of more than 40% this year.
As retailers rethink their fraud prevention strategies to find the optimal point for limiting online payment fraud while maximizing sales, CyberSource is offering a new managed service designed to tailor risk management for different types of merchants.
As retailers rethink their fraud prevention strategies to find the optimal point for limiting online payment fraud while maximizing sales, CyberSource Corp. is offering a new managed service designed to tailor risk management for different types of merchants, the company says.
“We’ve gone from mass production to mass customization in an underlying technology that conducts up to 30,000 tests on each transaction,” says Mike Bradley, director of client services.
The new customization is available in the company’s new Managed Risk Service, including Decision Manager and Advanced Fraud Screen enhanced by Visa, which checks data points such as bill-to and ship-to addresses, postal addresses, and credit card account numbers for consumers across 175 countries. But now, because some retailers are deciding to raise their tolerance level for fraudulent orders so as to retain more of their legitimate orders, the AFS product comes with an additional risk management service that increases the product’s cost by about 15-20%, Bradley says.
One of CyberSource’s retailer clients with about $90 million in annual sales has used the service to raise its fraud tolerance by a fraction of a percent, resulting in an increase in sales of $1.2 million, or 1.3%, Bradley says.
The managed service, for example, may tweak the AFS product to allow for additional transactions for retailers of digital music or merchants of apparel, based on the transaction data known to have low-risk characteristics, he adds.
“This is not opening up the floodgates to fraud,” Bradley says. “The criminal will see an almost imperceptible increase in the opportunity to commit fraud.”