CyberSource, a Visa Inc. (NYSE:V) company, today announced the launch of Decision Manager Replay, the industry’s first fraud tuning analytics tool which allows merchants to quickly analyze and adjust their online fraud management strategies.
“Merchants create rules and parameters in their fraud management systems that determine whether a transaction is accepted or denied, based on risk levels,” said Andre Machicao, senior vice president, CyberSource, a Visa Inc. company. “In some cases, the parameters they set might be overly cautious, causing them to lose legitimate, safe business unnecessarily. CyberSource’s new capability allows merchants to back test prior transactions to see what would have happened if they had set different rules.”
With Decision Manager Replay, merchants can perform true “what if” fraud strategy analysis. For example, a merchant can take a batch of recent transactions and run them through the Decision Manager system, re-testing for fraud using more or less stringent risk levels. Through CyberSource’s rich fraud analytics, the system can reconfirm which transactions are fraudulent, and which ones may have been mistakenly flagged for fraud and denied, but were in fact valid. The analysis takes just a few minutes, enabling merchants to quickly adjust their systems to ensure they don’t continue to deny valid transactions or send onto fraud analysts for added review.
According to a 2015 CyberSource North American Fraud Benchmark Report, on average, 27 percent of online orders received by a merchant will be routed to fraud analysts for additional manual review. Of those, roughly 85 percent are ultimately deemed valid and accepted.
“As our business and overall volumes grow, unfortunately fraudulent activity also increases,” said Jamon Whitehead, senior manager of payment and risk operations, Backcountry.com. “Right after we deployed Decision Manager Replay, we were able to more quickly and accurately fine tune our fraud management system to provide more predictable results - which has improved our bottom line without impacting our customer experience.”
“The organized crime rings behind so many of the fraud attacks are able to nimbly evolve their strategies,” said Julie Conroy, research director, Aite Group. “It is more important than ever for merchants to have similar tools, so they can quickly bring data intelligence into their defensive strategies with minimal impact on the customer experience.”
Available immediately, Decision Manager Replay is a new tool of Decision Manager, CyberSource’s flagship online fraud management platform for merchants. Decision Manager features the world’s largest fraud detection radar, which includes insights from more than 60 billion online and offline transactions processed annually by Visa and CyberSource.