01Feb, 2017

Payment Solutions

Fraud screening – when is it appropriate to introduce this into your business processes?

If you’re an established business or a start-up and you deal with credit card transactions, you need to know that when it comes to determining when it is appropriate to introduce fraud screening into your business processes, the answer is – if you want peace of mind – as soon as possible.

Fraud screening tools can be used to lower your risk of being targeted by fraudsters. This is extremely beneficial to your business. By being proactive in relation to fraud screening, you are ensuring that the costs to your company are greatly reduced. A security breach would potentially result in penalties, fines and costs linked with poor security practices in relation to PCI DSS compliance. Plus, there’s your company’s reputation to consider, too. No monetary value can fully replace that.

Something merchants need to firstly consider when considering fraud screening is when to introduce it during the transaction process. Obviously, the decision to apply fraud screening before or after bank authorisation will have implications for business processes, transaction fees and customer experience.

Any move to adopt a different transaction flow process must be weighed carefully as it could have financially significant implications. The decision must take into account all fees along the payment chain, ensuring the return on investment stays positive.

When deciding how best to process payment transactions, it’s important to make the decision that is right for your business, based on all available information — whether this relates to costs or benefits that can be accurately measured or other business key performance indicators that cannot be so precisely assessed.

When considering whether to screen pre- or post-authorisation, a merchant will need to assess the operational impact of a new transaction flow, potential cost savings and the implications for customer relationships. In addition, the merchant must decide whether they prefer to manage confirmed or attempted sales. On the other hand, a merchant operating in an industry with higher levels of fraud and higher transaction values might seek the most  effective fraud detection tools available.

Fraud screening tools can be extremely beneficial to your business. This is an area we know something about and can offer you professional guidance about how fraud screening can be one of the best things to introduce into your business payment processes from the get-go.

To learn more about when to implement fraud screening or if you have any concerns around payment processes and compliance please contact us here.


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