7. Fight fraud while maximizing profit
The balance between maintaining frictionless payments while still maintaining high levels of security and preventing fraud is a delicate one. With the number of online transactions only continuing to grow, fraud is one of the biggest challenges within the e-commerce space. Merchants need strategies to manage risk and block fraudulent transactions.
However, many of these systems, especially the more conservative ones, may end up blocking genuine transactions, leading to the issues with false declines and lost revenue explored above. Particularly as fraud technology becomes more sophisticated, a good fraud detection capability must be able to root out genuinely fraudulent transactions with a level of precision that can ensure legitimate payments are not affected.
By choosing a payment solution provider with a sophisticated approach to payment security, merchants can guard against fraud while at the same time ensuring that payments are processed seamlessly.
Before moving forward with a provider, merchants should be sure to understand the provider’s payment security capabilities and particularly how well the provider is able to filter between legitimate transactions and those which are illegitimate.
Merchants should not consider the implementation of 3D Secure as a one-size-fits-all, but instead adopt a segmented approach based on the facts on the ground. For example, at PayU we provide 3DS-tailored approval rates strategies and apply a 3DS optimization strategy based on payment data.
PayU has a dedicated approval rates team that monitors, analyzes, and applies improvements based on data – whether 3DS-related or when it comes to optimizing other aspects of your payment environment, we support merchants in leveraging data and analytics to improve payment performance.
8. Use the latest technologies
As global payments become more complex, technology is also evolving to help merchants keep up. In order to successfully optimize payments, merchants should look for a payment provider that employs the latest payment technology features.
Two essential examples are 3D Secure and network tokenization.
3D Secure 2 is a payment protocol which allows issuers to access ten times as much transaction information as before. This results in more precise risk analysis and more accurate cardholder profiles – and fewer false declines. Both merchants and issuers increase profits and keep their customers satisfied.
Network tokenization is helpful here as well. Network tokenization allows for even more security than ordinary tokenization, helping to drive higher approval rates.
Tokens used in this method achieve higher approval rates and capture higher transaction volume by avoiding lost and/or expired card declines, while providing more information and greater visibility to card issuers during payment authorization.
Network tokenization also helps to increase transaction security and enhance customer experience through an improved transaction flow.