The Fraud Practice Releases New White Paper Helping Merchants Assess In-House Manual Review Performance and Build the Business Case to Consider Outsourcing Them

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Since many card not present merchants rely on manual reviews for fraud risk management, they should be performed in the most cost effective way. The Fraud Practice’s latest white paper discusses the key factors and considerations for assessing the full costs and net benefits of performing manual reviews, whether they are performed internally, by a third party or a combination of both.

Building the Business Case: When it Makes Sense to Outsource Manual Reviews White Paper

Building the Business Case: When it Makes Sense to Outsource Manual Reviews White Paper

There are more factors and potential benefits outside of costs, such as the ability for merchants to reduce their liability of fraud and a vendor’s ability to provide responses on questionable orders more quickly.

For most merchants operating in the card not present (CNP) channel manual reviews are a necessity. If not relying on manual reviews for a subset of questionable orders then a merchant is either turning away too many good customers or allowing too many fraudsters to pass through. While manual reviews are a crucial component of most merchants’ fraud risk management programs, they also tend to be the most costly aspect of fraud prevention and can become difficult to manage as a merchant and their transaction volumes grow.

Manual reviews can be costly because they are time and labor intensive, and often organizations do not have a thorough understanding of the full costs associated with performing reviews in-house. The first step is to understand the costs and value that in-house manual reviews provide. While this seems simple enough there are many considerations, and it may be that even though manual reviews offer a net benefit overall there can be certain orders or types of transactions where the cost of performing a review outweighs the potential benefit of converting the order. One aspect of The Fraud Practice’s new white paper, titled “Building the Business Case: When it Makes Sense to Outsource Manual Reviews”, is discussing the many factors and considerations that go into building this internal review analysis, considering both the full costs and potential benefits of conducting manual reviews.

Once an organization has their bearings in terms of the costs and net benefits for performing manual reviews in-house they can begin to consider and compare third party vendor options. Michal Dembinsky, CEO of eFraud Security, elaborated on this further saying “there are more factors and potential benefits with Order Verification Vendors outside of costs, such as the ability for merchants to reduce their liability of fraud and a vendor’s ability to provide responses on questionable orders more quickly.”

The best decisions are informed decisions, and understanding what third party services may offer is best kept in the context of what the merchant can provide internally, considering both the costs and benefits each option offers.
The Fraud Practice’s latest white paper, titled “Building the Business Case: When it Makes Sense to Outsource Manual Reviews”, seeks to help organizations build out this business case, arming merchants with the considerations and formulas for conducting this cost-benefit analysis with their own data and weighing in-house costs and performance against what a service provider offers.

You can receive a copy of this white paper at no cost by completing this request form.

About The Fraud Practice

The Fraud Practice is a privately held US LLC based in Sarasota, Florida. The Fraud Practice provides consulting services on eCommerce payments, fraud prevention, and credit granting as well as prepared research and training for payment and fraud professionals. Businesses throughout the world rely on The Fraud Practice to help them build and manage their payment, fraud, and risk prevention strategies.

The Fraud Practice, LLC
1800 2nd Street, Suite 740
Sarasota, FL 34236

Direct: 941-244-5361

http://www.fraudpractice.com
http://www.cnptraining.com

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Justin McDonald
The Fraud Practice
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