Revenue Optimization 1: Authorization rates, fraud and some things you should know about risk management
Regardless if you process transactions online, on mobile, or in-store, you’ve had to fight fraud. In an attempt to block potential fraud, many traditional risk management systems go too far as they block all suspicious transactions, just to be safe.
The downside of this approach is that you block a lot of legitimate customers. And this means you lose out on revenue. Adyen's integrated risk management solution, RevenueProtect, has the answer.
Using a combination of Adyen’s transaction data and technology, it builds intelligent risk profiles designed to find the optimal balance between fraud prevention and a frictionless payment experience. The result is lower fraud levels and reduced false positives – all of which helps to protect your revenue.
Thousands of Adyen customers are reporting excellent results with RevenueProtect. For example, Spotify, which processes payments with Adyen in 56 countries, saw chargebacks reduce by 70%. And also furniture retailer Westwing saw a 30% reduction in manual reviews, and overall risk refusals reduced by 98%.
RevenueProtect's keystone feature, ShopperDNA combines device fingerprinting, algorithmic matching and behavioral analytics to create a clear view of the shopper behind every transaction.
This enables you to reward good customers by providing them with a seamless checkout experience, while at the same time stopping fraudsters, even as they change devices, networks and log-in identities.
Based on all the available data, RevenueProtect assigns a fraud score to each transaction. Good shoppers are instantly approved, and proceed unhindered. Similarly, known fraudsters are instantly denied.
For those high-risk shoppers that can’t be instantly approved or denied, the Dynamic Decisioning Engine routes the transactions to additional security checks, such as 3D Secure, or in the few remaining cases, manual review.
RevenueProtect is built on a fully customizable risk rules engine that leverages machine learning and industry-specific data. This tool comes with an easy-to-use, web-based interface that allows you to instantly customize rules to meet your exact needs.
The tool uses your historical data, industry specific best-practices and statistical modeling to suggest changes to reduce friction and fraud.
For most merchants, it means dramatically reduced chargebacks, reduced manual reviews, and increased conversion, all the while reducing friction. In other words, merchants are minimizing risk and maximizing revenue. RevenueProtect is currently available to all our customers.
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