Fraud & Compliance

The Best Fraud Management Systems for eCommerce

Here’s how to choose the best fraud management software for your company.

There’s a reason companies are seeking out the best fraud management systems right now. 2020 saw a massive increase in year-over-year ecommerce sales worldwide. According to an analysis of hundreds of millions of online transactions around the globe, the retail sector experienced over 200% growth compared to the same period last year. (ACI Worldwide)

This tsunami-like growth has opened the floodgates for fraudsters. Fraud attempts are up 3.7% from the same time in 2019 (ACI Worldwide). As a result, fraud management and identity verification have become critical focal points of doing business.

Rapyd Reviews: The Best Fraud Management Systems for eCommerce

For businesses, tackling fraud should include making changes to payment method acceptance, monitoring chargebacks and improving buyer identity verification. If fraud rates climb too high, major credit card companies can revoke a merchant’s right to process payments. Not only that, but high rates of fraud can tarnish a company’s reputation, creating distrust among customers and limit growth potential for the future.

Detecting and preventing fraud requires specialized systems that fit your business needs. Implementing the best fraud management system takes time and effort. Most merchants don’t have the capacity or internal experience to oversee their own fraud management team. Choosing the right system not only protects your business, it can free you up to work more efficiently and effectively as your business grows.

What to Expect from the Best Fraud Management Systems

With so many choices out there, how do you choose the best fraud management software? Consider the following attributes when evaluating fraud management systems.

Fraud Visibility

Choose a fraud management system that provides deep visibility into the many types of credit card fraud facing companies and customers today – as well as fraud from local and alternative payment methods, such as ewallets and bank transfers. Consider fraud management systems that have visibility into a large number of global transactions in order to recognize new threats and fraud attempts quickly.

Customization

Many companies need a system that can block fraudulent transactions and allow valid ones based on custom rules they set up. In addition to options that let businesses take a hands-off approach, the best solutions allow users to create their own rules and adjust settings based on different countries or regions where they accept payments and their individual risk tolerances. You need a system that aligns with your level of sophistication and your needs.

Machine Learning

Good fraud management systems use AI and machine learning to improve fraud detection. These systems “learn” over time to block bad transactions and allow legitimate ones. This protects your business while reducing false positives that lead to lost sales. Many fraud management systems use machine learning and AI to improve fraud detection and put the right preventive processes in place without a lot of hands-on intervention.

Ease of Integration

It shouldn’t be a headache to deploy and integrate a fraud management system into your existing ecommerce or payment processing platform. In fact, many payment processing solutions provide integrated fraud protection, which can dramatically simplify fraud management for businesses. Be sure to choose a tool that is easy to set up and maintain so you get protection no matter what payment methods you accept.

Best Fraud Management Systems

Below is a list of fraud management systems to serve as a guide as you choose the best solution for your company and customers.

Rapyd

Rapyd Protect is the first cross-border fraud management system for all payment methods and provides the best global solution. Rapyd offers customized, comprehensive international fraud management through AI modeling and proprietary data insights, recognizing high-risk transactions across payment methods. Rapyd is also the only fraud prevention solution that is combined with the world’s largest global payments network, protecting against fraud while accepting or sending payments.

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Sift

‘Sift manages fraud protection using highly accurate machine learning models and is known for its fully automated approach. Plus, there’s an intuitive user console for managing your fraud prevention strategy more easily.

Radar

Radar is Stripe’s built-in fraud management arm, powered by machine-learning models. For Stripe users, Radar is easy to get started with and requires no additional set-up. Radar collects data from Stripe’s millions of integrated businesses to improve its fraud detection ability.

Bolt

Bolt blends fraud protection with its customer checkout experience platform, optimizing a secure shopping experience.

Signifyd

There are three branches of Signifyd’s ecommerce fraud protection system: revenue protection, abuse prevention and payments compliance. These integrate to help companies quickly and easily verify payment validity.

ClearSale

ClearSale pairs its patented AI with expert fraud analysis to deliver ecommerce fraud protection and prevention. Their customers receive custom integrations and dedicated IT support.

Kount

Kount’s AI-driven “identity trust” fraud detection platform monitors activity from account creation to purchase, reducing chargebacks and automating decisions while maximizing valid conversions.

TransUnion’s IDVision

TransUnion’s IDVision solution focuses on authentication solutions at every point in the consumer journey. Fully customizable and tailored to a company’s acceptable risk level, IDVision provides a consumer-friendly approach with a variety of authentication products.

Prevent Fraud With the Right Fraud Management System

When it comes to choosing the best fraud management software, there are many options. The best fraud management systems will be customized to your needs, scaling with your company as it grows while providing the peace of mind you need right now.

 

Sources

ACI Worldwide. https://investor.aciworldwide.com/, 2020, https://investor.aciworldwide.com/news-releases/news-release-details/global-ecommerce-retail-sales-209-percent-april-aci-worldwide.

Rapyd Offers Built-In Payment Fraud Protection with Advanced Features

With the world’s largest local payments network, Rapyd infrastructure provides unique insights into the world of payments and identifies fraud before it happens.

  • Fraud coverage in 100+ countries
  • Fraud protection for hundreds of payment methods
  • Covering 2 million global access points
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Mark Stiltner

Mark Stiltner is a finance and fintech writer. From educating independent investment advisors on retirement plan management to helping families maximize their savings to educating businesses on global payment preferences, Mark has spent over a decade researching and educating audiences on complex financial topics. Mark has been a contributing author on blog articles and educational content for the Bank of Colorado, Pinnacle Bank, TD Ameritrade, First Data and Rapyd.

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