Payment Providers Respond to Merchant Concerns by Adding Fraud-Related Services: Report19-April-2018
A heightened sensitivity on the part of payment processors to the fraud and chargeback concerns of their card-not-present merchant clients highlighted a new report. The State of Payment Processing & Fraud: 2018 report, from Kount and The Fraud Practice, indicated that providing antifraud technology as a value-added service has become a priority for companies in the CNP processing ecosystem (i.e., payment processors, acquirers, payment facilitators, gateway providers, etc.).
Overall, 73 percent of the payment providers surveyed currently offer fraud-prevention tools as value-adds for their merchant clients and 75 percent plan on increasing that commitment. Fifty-five percent of those polled identified fraud technology tools and 52 percent identified integrated fraud rules or scoring as the value-added services they provide that are most important to their business strategy—the only two services chosen by more than half of respondents as “very important.”
Among their merchant clients, payment companies said chargebacks are their biggest concern (73 percent), followed by authorization decline (60 percent), order approval (47 percent) and sales conversion (47 percent) rates.