Prevent Chargebacks With Transaction Risk Scoring

Fraudsters are getting smarter and more sophisticated in their techniques, making them a constant challenge for businesses trying to safeguard themselves against payment fraud. This is why a robust risk scoring model that can be customized to your business needs is so important. Using data from the Identity Network, transaction risk scores can help you quickly and accurately identify potentially fraudulent transactions. This helps you reduce risk and improve the overall experience for your good customers, enabling you to boost revenue and increase customer loyalty.

Prevent chargebacks with transaction risk scoring score models is an important part of any fraud prevention strategy, as they are continuously updated and refined to keep up with evolving fraud tactics. However, there are also challenges associated with using these models, including the fact that they may rely on historical data and require manual review to detect new fraud patterns. Additionally, some fraudsters are able to game transaction scoring systems by manipulating the system’s rules and inputting false information to manipulate the outcome of the score.

Transaction Scoring API to Assess Fraud Risk: Detect Suspicious Behavior

Another common source of fraudulent chargebacks is merchant errors, such as accidental double billing or incorrect amounts charged. These can be caused by technical glitches or simply by human error during the payment process. Keeping records of these mistakes and training your support team to handle them quickly can help minimize this risk.

Identifying friendly fraud requires detailed monitoring of transaction data and customer behavior, as well as strong, compelling evidence when disputing chargebacks. Leveraging GenAI and device and user data can make this process much easier and faster, reducing the cost of fighting chargebacks.