The issue of fraud in digital payments is a particularly sensitive issue in ecommerce, where 4.09% of orders appear to be fraudulent.

From the shipping phase to billing to identity theft, fraudulent techniques have evolved over time. And the impact on the revenue and image of the brand can be catastrophic.

To protect themselves, companies must rely mainly on payment management platforms. But the lack of information and data available along the payment chain leaves many possibilities open for scammers to hide behind the flow of transactions. Using the lack of communication between Psp, Acquirer and other players in the pay chain.

Adyen is a technology platform that provides end-to-end infrastructure for payments, both in store and online and via mobile. This company specializes in digital payments has been in Italy for a few months, with offices in Milan.

Philippe De Passorio, Country Manager of Adyen Italia, points out some techniques of prevention and management useful to companies to combat this widespread phenomenon. Let’s see them in detail, these suggestions and information to be put into effect regardless of the type of payment.

Tips for digital payments

1. Identify the customer at the origin of each transaction

Identify the customer at the origin of each transaction thanks to optimal management of payment data. To establish the identity of buyers, you can rely on advanced algorithms, but also analyze the type of device used, the network or the person himself.

For example, a scammer will use a single email address but will try to use dozens of different cards. Or use the copy and paste to fill out payment information. Identifying these behaviors thanks to data makes it possible to block these profiles.

2. Refines fraud management approaches

It sharpens the fraud management settings so that they match the real needs of the company.

The detailed analysis of payment data together with a test and learn phase avoids fraud. And it reduces friction with customers, who, depending on the industry, have different ways of paying or behaving.

3. Thinking local, acting global

In the case of a company that manages numerous international transactions, it is necessary to analyse and set up fraud management for different countries. By adapting the strategy to the cultural differences that may exist. Indeed, a fraud prevention technique could work well in one country, but it would be inadequate for customers in another.

4. Limiting risks by automating management

Manual controls take a long time, which can be a waste of time when you need to be agile and responsive to make a payment.

For example, machine learning or artificial intelligence features allow you to decide in real time whether to approve or reject transactions, send them to the 3D Secure system or store them for manual verification.

25% of outstanding payments can be managed automatically, freeing up time and resources. In addition to optimising fraud management, this practice better protects the end customer.

5. Find the right balance between fraud management and conversion

It is essential to protect against fraud without compromising the fluidity of the payment experience of buyers. Don’t sacrifice relationships with customers for security management, the loss for your company might be greater.

More information about Adyen is available on the company’s website at this link.

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