The survival of an e-commerce company depends on its ability to approve the largest number of orders as quickly as possible while also minimizing financial losses due to fraud.
Therefore, a good anti-fraud service will include a thorough risk management system that ensures high rates of approved sales with few or no chargebacks — all in as short a response time as possible.
When companies don’t embrace fraud management best practices, they struggle with correctly processing transactions where fraud is suspected. They risk turning down good orders simply because they aren’t able to verify if the order is fraudulent. They also risk delaying order approvals because they lack the analytical skills and resources required for proper fraud reviews.
On the other hand, if too many fraudulent orders are approved, merchants risk high chargeback rates. Because merchants are responsible for chargebacks in card-not-present transactions, they’re required to bear those financial losses.