People outside of fraud prevention will probably tell you retail ecommerce merchants’ biggest fraud problem is the goods lost to fraudulent purchases made with stolen credit cards, but they’d be wrong.
Most fraud solution vendors will tell you that it’s the much larger number of legitimate purchases merchants deny because of poorly designed or poorly implemented fraud solutions. That’s a bit closer since $118 billion in legitimate card transactions are denied every year in the U.S., compared to $9 billion in actual fraudulent charges that go through, but they’re not entirely right either.
The real problem for retail
For most retail executives, the biggest problem is the growing amount of resources they must invest into learning, testing and implementing new technologies to marginally improve their fraud prevention efforts.
That’s because most anti-fraud vendors don’t build solutions to help retailers’ fraud analysts do their current jobs better. Instead most solution vendors ask retailers to:
- Drastically alter their fraud analysts job descriptions into low-level decision-making.
- Or, to outsource transaction approval decisions entirely to the solution vendor.
Today, almost all the fraud vendors on the market are trying to convince merchants to trust machines and inflexible rules to cover many, many different situations that might indicate fraud.
They expect you to buy complicated solutions that can require months to integrate into your payments flow and sort through all your ecommerce orders. To add to the pain, most of these vendors charge a fee per transaction that, just like interchange fees, take a bite out of your profit margin.
Wouldn’t it be easier to fight fire with fire, and use creative, intelligent humans to spot the sharp guys trying to defraud your retail operation? Why not buy a solution that makes your own fraud prevention team more valuable contributors to the company’s bottom-line and improve your profit margin as your sales grow?
Take back control of your business
Today, Pipl is addressing this need with the launch of Pipl Pro, an advanced search engine that provides the information fraud analysts typically use to catch fraudulent orders. Unlike most vendors, we ask you to pay a flat monthly fee per seat to use Pipl Pro. That way fraud prevention doesn’t mean you lose control over the financial decisions important to your business or take a bite out of your profit margin. Pipl Pro gives you a user-friendly platform for fraud analysts to more effectively verify customers’ identities and cut down on both false declines and false positives. The more your fraud analysts use Pipl’s search engine the higher your profits and profit margin will grow.
To learn more Pipl Pro, check out our press release. To get started, press the request a demo button on the Pipl Pro page.
Original blog post written by former Pipl Technology Evangelist Ronen Shnidman. Ronen is now Managing Editor @ about-fraud.com
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