Kount & Payment Processors: A Collaborative Ecosystem for Fighting Fraud
Payment fraud is on the rise and continues to skyrocket. The alarming truth is that while merchants have recognized that fraud is an increasing threat, they neglect deploying the necessary fraud protection for all systems and all devices. This leaves merchants not only vulnerable to fraudulent orders, but also facing lost revenue driven by having to decline legitimate orders. Payment processors are faced with the fraudulent orders they may be processing, as well as the challenge of legitimizing the businesses they are onboarding at the onset.
Here at Kount, we’re of the mindset that fraud needs to be tackled from the top of the payments chain (i.e payment processors, banks, and acquirers) to make the most difference in the fight against fraud. Why? Payment processors and gateways are in a unique position to detect and prevent fraud at a level that merchants could never achieve. As a result, Kount and its payment processor network, including BlueSnap and Chase Paymentech, have created an organic network that helps prevent fraud across the ecosystem. Kount works with multiple partners to capture real-time risk and fraud data, allowing its analytic technology to make decisions based on real data and specific risk criteria. This collaborative approach allows the system to evolve over time, and to account for and anticipate fraudsters’ tactics.
There is also a benefit of payment processors handling regulatory and compliance policies such as GDPR while they assist their merchants, not to mention the reduced cost and response time for merchants when fraud is detected during the payment authorization process. Collaborating and starting at the top of the chain to integrate fraud solutions helps both merchants and payment processors increase overall revenue and ROI.
While some may believe that it’s the merchant’s sole responsibility to put measures in place to combat fraud, the good news is that anti-fraud programs can (and should be) a collaborative effort. Collaboration among all players allows for a network effect that leverages shared data from multiple touchpoints, creating personas to help stop fraud before it reaches the merchant.
For more information on how Kount can work with payment processors to reduce fraud, download the eBook "Protect Your Merchants. Protect Your Profits".