CyberSource extends fraud detection to online direct debit
24 July 2006 | 1770 views | 0
CyberSource Corporation (NASDAQ:CYBS), today announced that Decision Manager, its popular risk management service, has been enhanced to provide fraud detection for online direct debit purchases covering five European countries.
Direct debit, a payment method in which the consumer supplies bank account information to the merchant allowing the merchant to then draw funds directly from the consumer's account, is a popular purchase mechanism in Europe. Until now, online direct debit had not had the protection of any automated anti-fraud capabilities at the merchant level. Merchants can now employ Decision Manager to assist in weeding out fraudulent eCommerce transactions from European direct debit purchases, just as they have long used Decision Manager to determine the validity of online payment card purchases.
Decision Manager allows even non-technical merchant staff to create business rules that define acceptance criteria for their online orders. Examples might include setting a baseline acceptable fraud score or limiting the number of expensive items, such as diamonds or flat-screen TVs, that any one individual can purchase within defined timeframes. Based on merchant configured rules, Decision Manager automatically evaluates transactions in real time and generates a score to enable the merchants to quickly determine whether the orders should be accepted, rejected, or reviewed. If marked for review, the built-in case management system allows merchants' review staff to quickly assess whether the transaction should be approved or rejected.
Answering market need
In CyberSource's 2006 Online Fraud Report, data from over 400 eCommerce merchants indicates the need for greater protection in international orders. On average, merchants say the rate of fraud associated with international orders is twice that of the overall average. Merchants also reject international orders at a rate three times higher than the overall average. According to Forrester Research, online retail sales in Europe overall will grow over 27% by 2007.
"This new direct debit protection service, designed to improve and safeguard the European online experience, is further evidence of CyberSource's commitment to global eCommerce," said Kirsten Fry-Sanchez, vice president, product management for CyberSource. "By continuing to integrate global payment and risk management, CyberSource is keeping our merchants on the leading edge of eCommerce payment management."