NOMAD PAYMENTS estimates that 85% of all fraud losses are currently compensated for by issuers and EMS assists the issuer in detecting fraud at an early stage, hence reducing their losses.

According to recent research, the electronic payments industry is moving from a portfolio risk management strategy to a consumer level risk management strategy. This adjustment requires financial institutions to consolidate multiple risks related to a single client across multiple product lines and react quickly to a changing market environment.

EMS is the solution for enterprise/consumer level risk management. It allows for a variety of solution sets which address specific risks (both generalised and customised) across multiple product lines within a flexible environment.

NOMAD PAYMENTS is at the forefront when it comes to helping its clients address fraud monitoring and management issues, particularly in the prepaid market. Nik Shelley Smith, Risk and Compliance Officer at NOMAD PAYMENTS says, "Issuer fraud detection is an essential part of an issuers day to day activities but it is not an exact science and is data intensive. While issuer fraud detection is a payment scheme requirement our customers need a reliable fraud strategy which incorporates systems, processes and people. Having evaluated the market place, we have selected EMS as the most appropriate solution to meet our customers needs".

NOMAD PAYMENTS believes that EMS addresses the key concerns that issuers face, namely detecting fraud before the cardholder, minimising the loss per fraud case and compliance with MasterCard and VISA payment scheme standards.

MasterCard's EMS is a multi-dimensional, real-time tool, driven by rules engine that predicts risk based on transaction patterns. It is cost-effective - especially in comparison to the high costs associated with establishing a neural network, compliant with payment scheme standards and does not require large transaction quantities to be effective. The rules engine can be configured to meet prepaid market requirements and allows for implementation of Anti-Money Laundering rules.

The system is enterprise-wide allowing a financial institution to develop and deploy decision making models internally. In essence, the tool provides the ability to compile and implement multiple risk prediction scoring/ decision making models covering all payment card brands and products including credit, debit and retail banking products. The models can be deployed on a single system using a transaction routing mechanism to route each transaction individually to a specific model and set of rules.

NOMAD PAYMENTS' experience in cooperating with both the Issuer and MasterCard ensures an optimised performance and fraud detection enabled by EMS. The company currently has multiple EMS implementations in operation, its easy configuration allowing each customer to manage their own rules. According to Nik Shelley Smith, "EMS puts issuers in a strong position to manage the risk on their products and their card portfolios."