Merlin & Adyen
More thrills, fewer spills: How Merlin reduced fraud notifications by 40%
When you’re in the business of fun, the last thing you want is for your checkout to become a killjoy. For Merlin Entertainments, the company behind some of the world’s best-known attractions, it’s crucial that every interaction feels effortless.
As Carl Mason, Merlin’s Head of Global Payment Risk, explained:
“The guest experience doesn't start when the person arrives at the attraction. It starts when they land on your website. You can easily put someone off if you make it difficult to pay, leading them to go elsewhere. So a great checkout experience is paramount.”
However, alongside the millions of genuine customers Merlin serves are innumerable fraudsters needing to be kept out, leaving Carl and his team with the daily challenge:
How do we keep the magic alive while protecting the business and customers from fraud?
To find out, we sat down with Carl and explored:
The challenge of relying on a purely rules-based approach to risk management
Achieving more nuance and automation through machine learning and network data
Connecting the dots between customer touchpoints with Shopper DNA
How Merlin reduced fraud notifications by 40% while increasing authorisation rates by 2%
Being irresistible to fraudsters (leading to higher fraud chargeback rates)
Merlin attracts over 60 million guests each year. Unfortunately, that popularity also makes it a target for fraudsters who buy tickets with stolen card details and resell them at a discount. This leads to chargebacks, which are expensive and take time to resolve.
Historically, Merlin relied on a static rules-based system to fight fraud. And, while this was effective, it could be slow.
“If we saw a spike in chargebacks, we would have to analyse our data, looking for common data points that tie those cases together and then create rules. Often, by the time these were implemented, fraud tactics had changed again. It was a constant race to keep up.”
Carl Mason
Head of Global Payment Risk, Merlin
Another issue with this approach was that, since these rules relied on Merlin’s own data, they lacked the nuance needed to separate legitimate guests from fraudsters. For example, a family booking last-minute tickets from a hotel abroad could look suspicious under static rules.
“It’s a difficult balance to get right. Fraudsters imitate genuine customers. While, at the same time, some customers sometimes inadvertently imitate fraudsters.”
Carl Mason
Head of Global Payment Risk, Merlin
Dynamic fraud defence powered by machine learning
Merlin partnered with Adyen to introduce Protect, an AI-driven risk solution designed to detect fraud in real time without compromising the customer journey.
Trained on Adyen’s global payments data, Protect continuously learns from millions of transactions, helping to spot suspicious behaviour faster and with greater accuracy. For Merlin, this meant decisions based on a global network of insights, not just what they saw on their own sites.
“We might not have seen this person before, but Adyen has. This gives us greater insight before we send the payment for authorisation and ensures we're making the best decisions.”
Carl Mason
Head of Global Payment Risk, Merlin
A key part of this intelligence is Shopper DNA, a feature that connects data points such as payment details, address, device, and transaction history to form a complete picture of a customer. With this, Merlin can identify and track customers across sites, channels, and regions, and build a more complete picture of their behaviour.
“Even if the customer made a retail purchase three years ago at LEGOLAND® Florida Resort, we can now link them to an online transaction made in the UK yesterday. It’s also really valuable to be able to see a customer’s journey throughout an attraction.”
Carl Mason
Head of Global Payment Risk, Merlin
Merlin was understandably cautious about moving away from their tried and tested rules-based system. To build confidence, Adyen enabled them to A/B test Protect alongside its existing rules. Over six months, the team compared machine-learning-driven decisions with their own rule set, measuring fraud outcomes and customer conversion.
Less fraud, more conversions, and good times
After four months of testing Protect on 80% of their traffic, the results were positive, helping Merlin achieve:
40% fewer fraud notifications: By catching bad actors earlier in the payment flow, Protect reduced the burden of chargebacks.
2% increase in authorisation rates: Even while they were blocking more fraudsters, Merlin was converting more customers.
Fewer support calls from frustrated customers: Call volumes from guests unable to check out dropped.
“Our authorisation rates for ecommerce and recurring payments are up 2% year on year. This is a huge gain, especially considering the year before we’d struggled to raise auth rates by 1%. Adyen Protect has enabled us not only to achieve our authorisation targets but to surpass them.”
Carl Mason
Head of Global Payment Risk, Merlin
Beyond the numbers, Merlin’s team also gained valuable time back. They no longer needed to manually investigate chargebacks or maintain extensive rule sets.
“With Adyen Protect’s machine learning, the system adapts by itself without us having to pinpoint it and create manual rules. This is a huge time-saver.”
Carl Mason
Head of Global Payment Risk, Merlin
Evolving to match every new adventure
As the way people pay continues to evolve, Merlin’s goal is to keep every interaction consistent with its wider brand experience.
“Adyen is a vital partner in helping us give our customers what they want from the payments experience while, at the same time, keeping them and our business secure. You're always waiting for the fraudster to work out your system and find a new way to navigate it. So it’s hugely valuable to us that Adyen is always innovating to help us stay a step ahead.”
Carl Mason
Head of Global Payment Risk, Merlin
Merlin values Adyen not only as a technology provider but as a partner. By being invited to share feedback on Adyen’s roadmap, the team helps shape how future tools evolve.
“I was recently invited to look at changes to Adyen’s customer area. It’s really great to be able to participate in Adyen’s roadmap and provide feedback that actually impacts change.”
Carl Mason
Head of Global Payment Risk, Merlin
The hands-on nature of the relationship also translates into the way Merlin and Adyen interact day-to-day. The teams meet every week, there are clear escalation paths for when issues arise, and feedback flows both ways to ensure Merlin gets the best from the partnership.
“This exceptional partnership allows us to focus on creating magical moments for our millions of guests worldwide, confident that payments are taken care of.”
Carl Mason
Head of Global Payment Risk, Merlin