Time for Your 100,000 Transaction Tune-Up?
The following 3 points are completely uncontroversial to anyone in the auto industry. Over time:
- Fuel injectors get clogged, and oil and carbon build-up clogs vacuum lines and fouls sensors used by your electronic fuel injection (EFI) computer. This leads to improper fuel/air ratio, spark timing, and fuel pressure. Result? Higher fuel costs and reduced performance.
- Periodic tune-ups fix these issues.
- Three things tell you it’s time for a tune-up: 1) poor performance and/or gas mileage, 2) warning lights and 3) time and mileage.
The same logic applies to fraud prevention systems for eCommerce operations. Over time:
- Fraudsters get better data and change tactics and techniques to beat aging fraud prevention processes. This leads to more fraud, chargebacks, and reviews. Result? Higher fraud prevention expenses and reduced profits.
- Periodic tune-ups fix these issues.
- Three things tell you it’s time for a tune-up: 1) poor performance and/or higher fraud expenses, 2) warning signs like more chargebacks and more lost merchandise and 3) time and transaction volume.
If your automotive, powersports, aftermarket auto parts, or auto audio aftermarket business has been processing eCommerce transactions for 3 years or at least 100,000 transactions – no matter how well you think your fraud prevention system has been performing – it’s time for a tune-up. Otherwise, you could be wasting money and losing profits.
Merchants, start your engines! Here are 6 proven strategies for tuning up your fraud prevention:
- Superior Fraud Screening and Analytics. If you’re not looking at dozens of data points per transaction and using integrated technologies to detect fraud, you’re spinning your wheels. Enterprise-class fraud prevention solutions analyze hundreds of data points per transaction and integrate multiple screening technologies – like Device ID, Geo-location, IP address lookup, Proxy-Piercing, Order Linking and more – to turbocharge fraud detection.
- Real-Time Data. Your fraud prevention should make decisions based on real-time data (not last night’s data or this morning’s data) and it should easily tap into third-party data sources to add context and greater visibility to borderline transaction decisions. Top-performing fraud prevention platforms not only tap into third-party data sources but do it in real-time so that they can capitalize on Big Data to separate good transactions from bad transactions.
- Advanced Artificial Intelligence and Machine Learning. Just as EFI relies on a computer to make micro-second decisions that optimize fuel/air ratio, spark timing and fuel pressure, enterprise-class fraud prevention solutions employ Artificial Intelligence and Machine Learning that apply massive compute and memory resources to capitalize on Big Data and reveal fraud patterns and linkages that are undetectable to humans.
- Expert Human Intelligence. Every online company is different and has a level of risk that is right for its business model. Your fraud prevention solution should let you set rules so you can have a strategic and customized response to rapidly changing fraud tactics that’s right for your business. More importantly, you should have access to expert guidance and insight so you can easily fine-tune rules so they’re optimized for your specific appetite for risk.
- Chargeback Alerts. As an eCommerce business that sells physical goods, you have the opportunity to cancel a shipment – even after the order is approved – in order to avoid a chargeback and loss of product. Tune-up your fraud prevention so it has the capability to intercept “bad” transactions even after they’ve been approved with near real-time chargeback alerts that can save you thousands in product losses and chargeback fees.
- Simple, Affordable SaaS. You don’t build every single product, component, or part that you sell. Why would you build the in-house fraud prevention system you use? Taking advantage of the highly-efficient Software-as-a-Service model lets you avoid IT integration hassles, bypass capital investments in IT infrastructure, minimize cost and complexity, and gain certainty over costs as you scale.
Everyone knows that an engine tune-up more than pays for itself with increased fuel efficiency and better performance. The same holds true for a fraud prevention tune-up:
- Reduced product losses and chargebacks
- Lower fraud prevention expenses due to increased efficiency
- Higher revenue thanks to more precise screening and fewer false positives
Analysts are forecasting a perfect storm of fraud for online businesses, including an 80% increase in card-not-present fraud over the next few years. Discover how that will affect your powersports, automotive, aftermarket auto parts, or auto audio aftermarket eCommerce operations.
Attend the webinar “Get on the Road to Less Fraud”, presented by fraud professionals from Motorcycle & Powersports News, Powersports Brand Consultant, and Kount. You’ll hear what these industry experts have encountered and how smart companies are boosting sales while beating fraud.