E-Commerce Fraud & Risk Assurance

Supporting Issuers, Acquirers, Merchants/ FinTechs, Brands and Regulators in Risk Assurance.

The answer is simple.

Online customers expect to fnd what they want and get their hands on it as quickly as possible, but they also expect the online experience to be seamless and stress-free. If they experience too much friction, it is likely that they will abandon their basket and take their business elsewhere. So, if you are not seeing high conversion rates, it is likely that you are not making it easy enough for your customer to purchase the goods they want.

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1. Authentication

This is the process of confirming a customer’s identity through an authentication factor such as knowledge, inherence, ownership, and user location. Of these factors, knowledge is still the most commonly used for transaction authentication (such as the use of a PIN in traditional face-to-face transactions, or a One Time PIN (OTP) for online purchases or account setups). However, there are many more authentication methods that could be used in either environment.
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2. Authorization

This is the confirmation of a cashless payment. Merchants use payment authorization to obtain a promise of payment from a cardholder’s issuing bank. This promise is sought during a transaction and typically takes place after authentication has occurred. It ultimately results in the decision from the issuer to approve the transaction (in which case the purchase is successful), or to decline it (in which case the purchase is unsuccessful).

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3. Fraud management

Fraud is defined as wrongful or criminal deception, which is intended to result in financial or personal gain. With any payment, it is a risk that needs to be guarded against, and solid fraud and chargeback monitoring practices and systems have been established to protect both your business and your customers. However, risk management needs to be set at the right level, so that you are protected but you don’t lose ‘good’ business.
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4. Customer experience

The customer experience depends on all aspects of the payment process working seamlessly. For example, if authentication doesn’t occur, the transaction is less likely to be passed on to be authorized so there is no chance of an approval. Also, if fraud checks aren’t balanced at the right level, a legitimate transaction may be unnecessarily and overcautiously declined. In order to create a positive experience, you need to optimize your processes to ensure that customers don’t end up frustrated.

The GM Sectec Team supports the entire lifecycle through:

  • Incident Rapid Response and optimizing risk controls
  • Market Research and Roundtables
  • Payment Threat Intelligence, AML, Remediation validation and brand audits

Digital Enablement – Expert Advisory

  • Authentication Excellence / 3DS2
  • Tokenization
  • Secure Remote Commerce ( “Click to Pay”)